- 13 Jun 2022
- ICICIdirect Research
TRENT CONTINUES TO REMAIN FASTEST GROWING RETAILER
TRENT - 6832 Change: -260.45 (-3.67 %)News: We attended Trent’s AGM and key highlights are: 1) Zudio remains the fastest growing value fashion brand with revenues surpassing Rs 1000 crore in FY22 (2x YoY growth), 2) Westside format surpassed pre-Covid levels from H2FY22 onwards with positive SSSG (FY22 revenue: Rs 2900 crore), 3) Zara India reported strong topline growth of 61% YoY (115% of pre-Covid levels) despite muted store additions, 4) losses for Star Bazar widened on a YoY basis mainly owing to higher discounts and sharper pricing, 5) two to three new fashion concepts are in progress out of which one would be a beauty format standalone store (brand: ‘Xcite’).
Views: Trent has over the years consistently outperformed peers given the strong brand patronage (Westside, Zudio, Star, Zara) and proven business model (Westside: 100% private label). During FY19-22, the company recorded impressive revenue CAGR of 15% despite various headwinds. The company continues to have healthy cash and investments worth Rs 600+ crore, which would support accelerated store additions.
Impact: Positive