Arvind Ltd ties up with GAP for new stores; stock hits 52-week high

MUMBAI: Shares of textile major Arvind hit 52-week high after the company’s subsidiary Arvind Lifestyle entered into agreement with to open 50 stores of GAP, a US-based clothing company, in India.

Arvind is one of the major suppliers of GAP in India. It has over 1000 retail outlets which sell other labels such as Nautica and Tommy Hilfiger among others.

Gap Inc sells brands such as Banana Republic, Old Navy and Piperlime, in its company-owned stores and other franchise stores across the world.

In the quarter ended June 2014, Arvind reported a strong 34 per cent rise in net profit to Rs 90.51 crore and 17 per cent growth in net sales to Rs 1754.30.

In another development, Arvind Lifestyle entered into a franchise agreement with North-America based ‘The Children’s Place.’

Arvind Lifestyle is expected to open 50 stores over time beginning in the fall of 2015.

At 10:40 a.m.; the stock was at Rs 259.30, up 2.49 per cent, on the BSE. It has been in an uptrend over the past six sessions and hit 52-week high of Rs 261.40 in trade today. Over 5 lakh shares were traded in the counter against two-week average of 4 lakh shares.