Tatas-owned Trent Ltd reported a 44 per cent rise in consolidated net profit in the second quarter of FY25 and revenue rose 39 per cent to ₹4,156.7 crore. However, the results missed street estimates sending the shares slumping over 7 per cent.

The retailer opened 43 stores during the quarter ending with a portfolio of 831 fashion stores. The company’s store portfolio consisted of 226 Westside, 577 Zudio, and 28 stores across other lifestyle concepts. During the quarter, it opened seven Westside and 34 Zudio stores (including 1 in Dubai) across 27 cities, and consolidated 9 Westside and 16 Zudio stores.

In an otherwise subdued consumer market, key initiatives including with respect to the product offer, the store portfolio and the operating supply chain helped us deliver encouraging results, the company said. “The change in revenue profile across our concepts remains broadly in line with our strategic objectives and plans,” it added.

”Consumer sentiment has remained relatively muted. This coupled with seasonality has meant that retail businesses have faced headwinds,” said Chairman Noel Tata. With that context, the company had delivered strong results across brands, concepts, categories and channels in the quarter, he added.

EBITDA was 40.7 per cent higher at ₹643 crore, while the EBITDA margin improved marginally to 15.47 per cent from 15.31 per cent a year ago.

Star Hypermarket’s revenues rose 27 per cent year over year to ₹898 crore, and two new stores were added. Like-for-like growth was 14 per cent higher, driven by its own brands, staples, fresh, and general merchandise, contributing to over 73 per cent of its revenue. LFL growth has been slowing since 2023. With 74 stores spread across ten cities, the hypermarket has a total area of 1.2 million square feet.

The focus is on building its own brands, and Star’s product split showed that its own brand share had increased to 73 per cent from 66 per cent a year ago.

“We have applied Trent’s playbook to the Star business and are witnessing strong customer traction. The success of own branded products augurs well for the Star business. We are confident that this business is well poised to shift gears and deliver substantial value to customers and shareholders,” it said.

Zudio, Westside

Fashion concepts such as Zudio and Westside reported double-digit growth in like-for-like stores. The company said the gross margin profile of the two formats were consistent, but did not provide more granular details.

Zudio has emerged as one of its fastest-selling formats with affordable apparel, and the retailer has been rapidly expanding its store footprint. With an area of 5.5 msf it is present in 184 cities, including one in Dubai.

Westside is its flagship fashion format and has been expanding at a relatively slower pace.

Emerging categories such as beauty, personal care, innerwear and footwear contributed a fifth to revenues.

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