A customer leaves the Tommy Hilfiger flagship store on Manhattan’s Fifth Avenue in New York, U.S. (Photographer: Ramin Talaie/Bloomberg)

Arvind Fashions Bets On Small Towns To Aid Growth In FY20

Arvind Fashions Ltd. plans to open new outlets in tier-II cities and towns to boost growth in financial year 2019-20.

“We are looking at adding stores in largely small towns as demand for our power brands was healthy in a pilot conducted last year,” J Suresh, the garment retailer’s managing director and chief executive officer told BloombergQuint. “We will continue to open stores in 75-80 towns we have identified.”

Arvind Fashions, which calls its licensed international brands such as U.S. Polo, Arrow and Tommy Hilfiger and its in-house label Flying Machine as “power brands”, said it plans to open around 125-150 outlets for their power brands in FY20.

Key Highlights (Q4, YoY)

  • Revenue rose 2 percent to 1,169 crore.
  • Ebitda rose 13 percent to 85 crore.
  • Net profit rose 1.5 times to 21.3 crore.

The shares were locked in the lower circuit of 10 percent in today’s trade compared with a 0.4 percent gain in the Nifty.

Watch the full interview here: