Retail Sector Q3 Earnings Preview: Festive Season Expected To Revitalise Recovery Rates, Says ICICI Direct
A shopping cart filled with groceries. (Photographer: Udit Kulshrestha/Bloomberg)

Retail Sector Q3 Earnings Preview: Festive Season Expected To Revitalise Recovery Rates, Says ICICI Direct

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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.

ICICI Direct Report

We expect revenue recovery rates of fashion and lifestyle retailers to perk up in Q3 FY21E to 65-75% from 45-55% in Q2 FY21.

In October-November recovery trajectory improved to approximately 75% owing to strong pent-up demand driven by festive buying.

Various retail players indicated that tier-III and IV towns saw positive YoY growth in November.

Furthermore, online sales gained robust traction with sales tracking 1.5-2 times pre-Covid-19 levels, supported by a low base.

Click on the attachment to read the full report:

ICICI Direct Retail Q3FY21 Result Preview.pdf

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