Trent records 5-fold jump in Q4 profit on more Zudio apparel stores

Low-priced apparel push: Apparel retail brand Trent has reported a five-fold jump in the Q4FY24 profit on Monday, which is its third consecutive quarter of triple-digit profit growth after the retailer opened up its affordably-priced Zudio brand of stores. The Tata Group-owned company reported its consolidated profit before exceptional items and tax rose to over Rs 300 crore for the fourth quarter ended March 3. 

Store consolidation 

Trent saw a one-time gain of over Rs 500 crore owing to reassessed lease contracts resulting from store consolidation or closures, adjusting assets and liabilities accordingly. The retailer overcame sluggish demand and restrained consumer spending by opening 86 Zudio stores, which sell everything from dresses to perfume at less than Rs 999, attracting young consumers looking to regularly refresh their wardrobes on a tight budget. Trent also opened 12 of its mid-range Westside stores, boosting store counts under the Zudio and Westside brands to 545 and 232, respectively.
The company posted a 51 per cent rise in revenue to 32.98 billion rupees, marking its 13th straight quarter of revenue growth. Its expenses rose 39.2 per cent. Peers Arvind Fashions and Aditya Birla Fashion Retail will report next month. Shares of Trent rose 29.2 per cent in the March quarter. 

(With Reuters inputs)