Arvind confident it is on track for profitable growth, focuses on premiumisation

February 19, 2024

Category: GARMENTS

Country: India

Region: Asia

By Isabelle Crossley
16th February, 2024
2 minutes read

Arvind Fashions is confident that its focus on profitable growth is paying off and believes that its performance in the third quarter of the 2024 financial year strengthened its market position. The business’ work towards premiumisation is yielding positive results along with lower discounting.

“We are confident that our margin will sustain at the current level of 53.3% which is a sharp nearly 480 basis point improvement,” Arvind Fashions’ managing director and CEO Shailesh Chaturvedi told ET Now. “And we strongly believe that it will continue in Q4 also. As far as premiumisation is concerned, we have seen a good traction that people are wanting more elevated, little more differentiated product and a lot of our brands, be it Tommy Hilfiger, Calvin Klein, or the 1851 line of Arrow or the premium part of US Polo, they are all doing really well and they are doing higher growth and higher pull price sell through.”

Due to the positive effects of premiumisation on its financials, Arvind Fashions plans to continue to push this strategy. This should bring the business better than industry standard growth rates and better than industry standard margin improvements, according to Chaturvedi. Lowering its discounting has also enabled Arvind Fashions to increase the value or its earnings before interest, tax, depreciation, and amortisation.

Arvind Fashions’ business to customer online model is currently growing at double the rate of last year, the Economic Times reported. The business is also undertaking a conscious de-stocking of its business to business wholesale online segment to streamline operations.