Bata Eyes Festive, Year-End Sales To Boost Revenue Growth
The company’s chief financial officer said festive sale and “end of season” sale will boost revenue growth in the ongoing quarter.
Bata India Ltd. expects its festival sales and an upcoming “end of season” sale to boost revenue growth in the ongoing quarter, Chief Financial Officer Ram Kumar Gupta told BloombergQuint.
The footwear maker also expects to benefit from rising sales of its premium products, including its newly-launched “Red Label” collection. “Premiumisation at present contributes around 32 percent (of the overall revenue),” Gupta said. “We’re expecting this number to increase to 35 percent by the end of ongoing financial year.”
The company, he said, wants to improve margins by bringing in an optimal operational cost structure that includes maximising capacity utilisation along with building long-term agreements with suppliers.
Other highlights:
- Expects to open 90 stores in the current financial year to tap into the metro, tier-1 and tier-2 cities at a capital expenditure of around Rs 100 crore.
- To increase marketing spend by at least 50 percent in the upcoming financial year.
The company had, in an earlier interaction with BloombergQuint, said that it would open about 100 retail stores and 50 franchise stores in the ongoing fiscal.