People buy clothes and beauty products at a Zudio store in Thiruvananthapuram, Kerala, India, April 4, 2024. (Photo by Creative Touch Imaging Ltd./NurPhoto via Getty Images)
Nurphoto | Nurphoto | Getty Images
Shares of one of the largest fashion retailers in India. Trentfell more than 11% on Tuesday after the company’s first-quarter revenue growth missed profit targets.
Tata Group reported standalone revenue of 56.66 billion rupees ($595 million) for the quarter ended June, up 19% from last year, Trent said on Monday.
Citigroup remains “cautious on Trent” due to weak revenue per square foot growth trends, rising competition, the impact of cannibalization and new store expansion in smaller cities. The firm expected the company to report revenue growth of 23%, it said in a report on Monday.
Trent operates fast fashion stores primarily in India under the Westside and Zudio brands. According to the company, Trent had 1,312 stores in its portfolio at the end of June.
The company’s shares have risen 4.3% so far this year, while India’s benchmark Sensex index has fallen nearly 8%.
Choose CNBC as your preferred source on Google and never miss a beat from the most trusted business news source.