Retail Sector Check - Solid Q1 Print; Geared Up For Strong Festive Season: ICICI Direct

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Direct Report.Buoyed by strong wedding/festive season and a normalised quarter after a gap of two years, lifestyle retailers displayed a strong show with robust topline growth. Revenue recovery rate for most apparel players was the highest in Q1 FY23 (115- 140%). On a favorable base, our retail coverage universe reported revenue growth of 146% YoY with impressive three-year compound annual growth rate of 17% in Q1 FY23. Most companies undertook a price hike in the range of 12-15% (YoY) to offset a spike in raw material inflation. While price hikes did have an impact on price sensitive audience (average selling price less than Rs 400, V-Mart Retail Ltd. and Relaxo Footwears Ltd. witnessed volume de-growth), mid-premium to premium segments (Aditya Birla Fashion and Retail Ltd., Shoppers Stop Ltd.) were more or less insulated. Despite inflationary pressures, our retail coverage universe maintained Ebitda margins at pre-Covid levels of 14%..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Retail Sector Check - Solid Q1 Print; Geared Up For Strong Festive Season: ICICI Direct

Retail Sector Check - Solid Q1 Print; Geared Up For Strong Festive Season: ICICI Direct

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