India fashion retailer Trent tumbles 11% as revenue growth disappoints
People shop for clothing and beauty products at a Zudio store in Thiruvananthapuram in Kerala, India, on April 4, 2024. (Photo: Creative Touch Imaging Ltd./NurPhoto via Getty Images)
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Shares of one of India’s largest fashion retailers TrentIt fell more than 11% on Tuesday after the company’s first-quarter revenue growth missed earnings targets.
The Tata Group company reported standalone revenue of 56.66 billion rupees ($595 million) for the quarter ended June. 19% annual increaseTrent said Monday.
Citigroup remains “cautious on Trend” due to the weak trend in revenue per square foot, increased competition, the impact of cannibalization and the opening of new stores in smaller cities. A report released Monday said the firm expects the company to report 23% revenue growth.
Trent operates fast fashion stores under the Westside and Zudio brands, primarily in India. At the end of June, Trent had a portfolio of 1,312 stores, the company said.
The company’s shares have risen 4.3% since the beginning of this year, even as India’s benchmark Sensex has fallen nearly 8%.
