Go Fashion Q4 Review - On The Right Track, The Repeatability ‘Template’ Is Intact: ICICI Securities

Go Fashion Q4 Review - On The Right Track, The Repeatability ‘Template’ Is Intact: ICICI Securities

<div class="paragraphs"><p>A girl wearing losers. (Photo: Frank Flores/Source: Unsplash)</p></div>
A girl wearing losers. (Photo: Frank Flores/Source: Unsplash)

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ICICI Securities Report

We liked Go Fashion India Ltd.'s intent to-

  1. drive investments (on tech., advertising and promotion (maybe a slight increase), building another (small) warehouse to drive efficiencies) and not be complacent,

  2. comfort on margins (price increases taken),

  3. continued thrust on exclusive brand outlet store addition (intent is to add 120-130 stores each year going forward), and

  4. active (raw material) inventory management given the challenges.

Q4 print was good both in terms of revenue (excluding of the disruption in January) and margins (some cut in discretionary spends helped).

We believe the brand has been able to create a replicable template of diverse product portfolio along with a highly efficient operating model of EBOs.

Further, Go Fashion's continued success in the new products outside of core products (churidars and leggings) is key for de-risking growth opportunities and scaling up e-commerce business.

Click on the attachment to read the full report:

ICICI Securities Go Colors Q4FY22 Result Update.pdf


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