BENGALURU (Reuters) – Indian footwear retailer Metro Brands on Friday reported first-quarter profit and revenue that missed expectations due to muted wedding season demand.
The company said its consolidated net profit after tax fell 1.2% to 917.3 million rupees ($10.93 million) in the June quarter from a year ago.
Analysts, on average, had expected a profit of 999.3 million rupees, according to LSEG data.
Revenue from operations came in at 5.76 billion rupees, below analysts’ average estimate of 6.23 billion rupees.
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KEY CONTEXT
The quarter saw significantly lower wedding dates – when customers typically spend on pricier footwear – compared to the same period last year, and loss of business days due to store closures during the elections, the company said.
Subdued store footfall due to intense heatwaves also resulted in muted sales, it added.
Peers Relaxo Footwears and Bata also reported a fall in their first-quarter profits.
PEER COMPARISON
Valuation (next Estimates (next 12 months) Analysts’ sentiment
12 months)
RIC PE EV/EBITD Revenue profit Mean # of Stock to price Div yield
A growth(%) growth(%) rating* analysts target** (%)
Metro Brands Ltd 76.43 39.22 17.46 12.11 Hold 17 1.10 0.42
Bata India Ltd 50.42 21.26 9.84 32.92 Hold 12 1.05 0.79
Relaxo Footwears Ltd 71.95 37.93 10.64 24.07 Hold 12 1.03 0.36
Campus Activewear Ltd 57.15 28.85 14.18 39.81 Hold 7 1.04 –
* Mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell ** Ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
APRIL-JUNE STOCK PERFORMANCE
— All data from LSEG
($1 = 83.9230 Indian rupees)
($1 = 83.9260 Indian rupees)
(Reporting by Aleef Jahan and Chris Thomas; Editing by Eileen Soreng)
