Trent shares experienced a significant single-day decline on Tuesday. This drop followed first-quarter financial results that did not meet market expectations. Revenue growth was largely driven by recently opened stores in smaller towns. These ...
By ET Bureau |
ETMarkets.com
Shares of Trent, which operates lifestyle store Westside and fast-fashion chain Zudio, plunged 12.4% to ₹2,927.8 apiece Tuesday.
Mumbai: Shares of Tata-owned fashion, beauty and lifestyle retailer Trent slumped more than 12% on Tuesday, its steepest single-day slide in 15 months, after first-quarter performance missed Dalal Street expectations. Still, analysts continue to remain positive on Trent's growth trajectory over the medium to long term.
Shares of Trent, which operates lifestyle store Westside and fast-fashion chain Zudio, plunged 12.4% to ₹2,927.8 apiece Tuesday. Revenue growth of 19% trails street estimates, but stock retains 10% upside potential Nifty 50 fell 0.1% lower at 24,398.7.
Kaustubh Pawaskar, lead analyst, ICICI Direct, said Trent reported revenue growth of 19% year-on-year, largely in-line with the brokerage's expectations of 20% growth (lower than Street expectation of 22-23%) during the quarter.
"A large part of the revenue growth is driven by stores added in the past two to three quarters," he said. "Most of the new store addition is done in the tier 2 and tier 3 towns where revenue per square feet (sq ft) is less compared to tier 1 and metros, which affects the overall revenue per sq ft and LFL (Like-For-Like) growth."
Airtel to Trent: 44 cos likely to report double-digit profit slump in Q1. Are your stocks on the list?
