Footwear Sector Check - No Bargains Here: HDFC Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Research Report.Footwear, like most fashion and lifestyle categories, is fragmenting, with top businesses within the ecosystem losing revenue/Ebitda share (23 footwear companies tracked; more than 3/4th the organised pie; cohort growth 10% compound annual growth rate over FY15-20). As shoppers increasingly want a multi-brand environment, the ecosystem is becoming more casual (sports/at-leisure-heavy) and distribution-led (wholesale plus online). Retail sales densities are thinning (0 to down 5%). Many inefficient brands have been found hiding behind high gross margins to save ballooning cost structures, only to worsen their balance sheets; advantage platforms! We reckon inefficient brands could be arm-twisted by platforms into parting with a portion of their margins to boost sales. Against this backdrop, a company’s ability to connect relevant assortment with relevant distribution at smart price points is key for a long and healthy reinvestment story..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Footwear Sector Check - No Bargains Here: HDFC Securities

Footwear Sector Check - No Bargains Here: HDFC Securities

Choose a plan