Shares of Arvind Fashions surged 12% to hit an eight-month high of ₹562 apiece in intraday trade on Tuesday, July 29, as investors reacted positively to the company’s June quarter performance, announced post-market hours on Monday.
The company, which retails Calvin Klein and Tommy Hilfiger brands in India, reported a 20% rise in quarterly core earnings, driven by new store openings and a focus on higher-priced apparel.
Revenue from operations rose to ₹1,107 crore from ₹955 crore, while other income increased to ₹15 crore from ₹7 crore a year earlier. At the operating level, EBITDA improved to ₹148 crore from ₹123 crore, with margins improving by 50 basis points to 13.4%, despite 140 basis points higher advertising spending YoY.
The company’s profit after tax (PAT) jumped sharply to ₹13 crore, compared to just ₹1 crore in the same quarter last year. This healthy performance was supported by rising demand for luxury products, with affluent Indian consumers helping premium brands remain resilient despite a broader slowdown in consumer spending caused by sluggish wage growth.
Arvind Fashions, which already targets affluent customers with pricing well above brands such as Vero Moda and H&M, is expanding into higher-priced apparel and accessories, enabling it to defy the retail slowdown.
The company said that the premiumization trend is driving strong sell-throughs and like-to-like (LTL) growth for Calvin Klein, and it expects the brand to continue delivering strong financial performance despite a challenging demand environment.
After posting 8.5% revenue growth last year, the retailer is targeting a 12–15% revenue increase in FY26, supported by new store openings, higher marketing spending, and an expanded online presence.
It aims to open 150 new stores, largely through the FOFO (Franchise-Owned Franchise-Operated) route, with higher net square footage additions compared to FY25.
Shares deliver over 350% return in last 5 years
The company has made a strong rebound after hitting a one-year low in April, gaining 68% since then, and has delivered a 353% return over the last five years. It is the country’s leading casual and denim player, with a diverse portfolio of fashion brands catering to consumers across various sub-categories and price points.
With a host of renowned brands, both international and indigenous—including U.S. Polo Assn., Arrow, Tommy Hilfiger, Calvin Klein, and Flying Machine—the company has established a strong presence across the lifestyle fashion segment.
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