Trent Reports Weakest Revenue Growth In 16 Quarters, Net Profit down 46.5%

Rising income from new store openings and a modest increase in same-store sales led to Trent Ltd. reporting its weakest revenue growth in 16 quarters during the January-March period. However, the company’s net profit was slightly higher than analyst expectations.

Trent’s revenue from operations grew 28.8% on year to ₹41.1 billion, marking the lowest growth since the April-June of 2020-21. This fell short of the Street’s projection of ₹42.8 billion. The company’s net profit, which declined 46.5% on year to ₹3.5 billion, was just above the Street’s estimate of ₹3.4 billion.

The net profit for the March quarter of 2023-24 had included an exceptional item of ₹5.4 billion from a reassessment of gains from lease terms. This exceptional item inflated the profit, which was absent in the March quarter of the previous financial year. However, excluding this, Trent’s pre-tax gross profit rose 43.6% on-year to ₹4.5 billion during January-March of 2024-25.

Trent’s overall operating earnings before interest and tax (EBIT) margin for the quarter was 9.3%, up from 8.3% during the same period last year. The EBIT itself rose over 44% on year to ₹3.8 billion.

The company reported mid-single-digit like-for-like growth in its fashion portfolio for the reporting quarter, although for the full financial year, this was in the double digits. Emerging categories such as beauty and personal care, innerwear, and footwear continued to gain traction, contributing over 20% of Trent’s revenue. Online sales grew 43% in 2024-25, accounting for 6% of Westside’s revenue. The gross margin profile of Westside and Zudio stores remained consistent.

Store openings played a key role in boosting revenue. Trent opened 40 Westside-branded and 244 Zudio-branded stores during 2024-25, consolidating 24 stores under each brand. As a result, the company now operates 248 Westside stores, 765 Zudio stores, and 30 stores in other lifestyle concepts. In the January-March period, Westside opened 13 stores, while Zudio opened 132.

These new stores also helped the company expand into new geographies, including 64 additional cities and towns across India, particularly tier-II and tier-III locations. As of March 31, Trent had a presence in 242 cities in India and the UAE, with 14.9 million square feet of retail space.

Trent noted that while it continues to expand in semi-urban markets, it is also focusing on strengthening its presence in metropolitan and tier-I cities to boost top-line growth from key markets. The company is also increasing the density of its store portfolio in metros to enhance brand visibility, improve consumer connection, and increase sales from micro-markets.

As a result, Trent’s top line grew nearly 40% on year to ₹166.7 billion for 2024-25. The net profit, excluding the one-time gain in 2023-24, rose by over 10% to ₹15.9 billion. The company’s operating margin for January-March was 11.1%, up from 9.9% in the same period last year.