Analysts at Elara Capital, in a note last week, said they expect retail companies to deliver revenue growth of 12 per cent year-on-year (YoY) in the quarter.
“This will be led by wedding season consumption and festival demand, driving sequential volume improvement,” the note stated.
“Demand is selective, with value-led categories outperforming, while premium recovery remained calibrated and mix-driven. Channel checks suggest sharper assortment planning and new product launches are driving incremental footfall, with customer conversion at higher price points,” the note added, while stating that elevated discounting and season-led promotions may weigh on margins.
Titan Company, in its quarterly update, said its jewellery portfolio clocked 41 per cent YoY growth during the quarter, driven by substantial increases in average selling prices, which offset flat buyer growth.
To navigate elevated gold prices, Tanishq deployed a gold exchange offer that “sustained consumer engagement beyond the traditional festive window,” the company stated.
Meanwhile, gold coin sales nearly doubled on a YoY basis, “reinforcing their strong investment proposition,” the update said.
Rival Kalyan Jewellers said the recently concluded quarter was very encouraging, recording consolidated revenue growth of approximately 42 per cent compared with the same period in the previous financial year, driven primarily by strong festive demand.
“Demand during the period after Diwali also continued to remain robust despite volatility in gold prices. Growth was broad-based across plain gold and studded categories. The quarter recorded healthy same-store sales growth of approximately 27 per cent,” the company said in its update.
Tata Group’s apparel arm Trent, which operates Westside and Zudio, said in its update that the company saw a 17 per cent YoY growth in revenue to Rs 5,220 crore in the quarter, with 17 new Westside and 48 new Zudio stores opened during the period.
According to Elara Capital, an extended wedding season and occasion-led buying led to improved demand for wedding wear, even as “broader discretionary spending was measured”.
Seasonality and wedding-related gifting also led to modest growth in luggage sales. Amid elevated competition, “sales are driven by new launches and product differentiators,” the analysts said.
Nuvama Institutional Equities said in its preview report on the sector that it anticipates a subdued December quarter, with jewellery retailers standing out. “Titan posted robust 40 per cent growth in its core jewellery segment, mirroring strong trends among other jewellers. Value retail formats struggled once more, weighed down by a high base from Pujo and delayed winter wear sales. Footwear companies are likely to exhibit ongoing weakness, consistent with prior quarters,” the report said.
“Quick-service restaurants face persistent soft demand, barring Restaurant Brands Asia and Jubilant FoodWorks, which achieved over 5 per cent like-for-like growth. Electronics retailers are also likely to report subdued performance,” it added.
