Table of Content
Key Highlights
1. Financial Results (Q3 & 9 Months, Ending December 2023)
- Metro Brands Limited (MBL), a leading Indian footwear retailer, released its Standalone and Consolidated Financial Results.
- Q3 FY 2023-2024 standalone revenue reached Rs 616 crores, marking a 7% YoY increase.
- This quarter set a record with the highest-ever sales for MBL.
- Gross margin remained stable, surpassing the guided range, standing at 59% for the nine months ending December 2023.
2. Store Expansion
- MBL expanded its brick-and-mortar presence by successfully opening 31 new stores in Q3 FY 2023-2024.
- This brings the total new store count to 87 for the fiscal year, aligning with the goal of reaching 100 stores by the end of FY 2023-2024.
3. Partnership with Foot Locker
- MBL achieved a significant milestone by entering a long-term partnership with Foot Locker, Inc., a New York-based athletic retailer.
- This exclusive agreement grants MBL the rights to own and operate Foot Locker stores in India, enhancing its global brand portfolio.
4. Strategic Initiatives and Goals
- MBL is in the process of liquidating FILA inventory and closing Exclusive Brand Outlets (EBOs) as part of its planned restructuring.
- The company is on track to achieve these goals by the end of FY 2023-2024.
- Looking forward to FY 2024-2025, MBL plans to strategically reposition the FILA brand.
- In FY 2025-2026, the company’s primary focus will be on growth and prominence in the athleisure industry.
Business Highlights
- Q3 FY24 showed a 6.8% YoY revenue growth, attributed to a high base effect from increased festive demand post-COVID restrictions in FY23.
- Store expansion continued with a net addition of 31 stores, covering 3 new cities during Q3 FY24.
- Ecommerce sales, including omni-channel, reached Rs 53 cr in Q3 FY24, but faced challenges during the transition to a new Order Management and Warehouse Management System.
- Q3 FY24 consolidated PAT included a loss of Rs 15 cr from CBL, compared to Rs 14 cr in Q2 FY24.
- 9M FY24 demonstrated stable YoY growth, in contrast to 9M FY23, which experienced pent-up buying after easing COVID restrictions and more marriage dates.
- Store expansion remained on track with a net addition of 87 stores, covering 18 new cities in 9M FY24.
- Ecommerce sales, including omni-channel, for 9M FY24 amounted to Rs 174 cr, showing a notable 35% YoY growth.
- 9M FY24 consolidated PAT included a loss of Rs 44 cr from CBL. Additionally, there was ~0.6% PBT impact due to incremental charges for ESOP issuances and Ind AS 116 (attributed to higher new store openings) compared to 9M FY23.
Additional Read: Q3 Results Dashboard
Q3 FY24 Business Highlights
Standalone
| Q3 FY24 | Q3 FY23 | YoY Growth% | |
| Revenue | 616 | 577 | 6.8% |
| EBITDA | 209 | 204 | 2.6% |
| EBITDA% | 33.9% | 35.3% | – |
| PAT | 111 | 115 | -3.0% |
| PAT% | 18.0% | 19.9% | – |
9M FY24 Business Highlights
Standalone
| 9M FY24 | 9M FY23 | YoY Growth% | |
| Revenue | 1,704 | 1,538 | 10.8% |
| EBITDA | 564 | 528 | 6.9% |
| EBITDA% | 33.1% | 34.3% | – |
| PAT | 297 | 292 | 1.8% |
| PAT% | 17.4% | 19.0% | – |
Additional Check: Metro Brands Limited Share Price
About Metro Brands
Metro Brands stands as one of India’s premier footwear specialty retailers, recognized among the aspirational brands in the footwear category. Originating with the inauguration of its first store in Mumbai in 1955, the company has transformed into a comprehensive destination for all footwear needs. Offering an extensive array of branded products for men, women, unisex, and children, Metro Brands caters to diverse occasions, from casual to formal events. Beyond footwear, the company extends its selection to include a diverse range of accessories such as handbags, belts, and wallets.
The retail portfolio features Metro Brands’ own labels like Metro, Mochi, Walkway, Da Vinchi, and J. Fontini, alongside renowned third-party brands such as Crocs, Fitflop, Fila, Skechers, Clarks, Puma, and Adidas, complementing its in-house offerings. Noteworthy is the specially curated Metro footwear range, tailored to regional sensitivities, ensuring it aligns with the unique preferences of different areas.
As of December 31, 2023, Metro Brands proudly operated 826 stores, spanning 192 cities across 31 states and union territories in India. This extensive presence underscores the company’s commitment to providing quality footwear and accessories to a diverse and widespread customer base.
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Sources:
https://www.bseindia.com/xml-data/corpfiling/AttachLive/445d028d-5c81-4a93-8099-6c199fbfd67e.pdf
https://www.bseindia.com/xml-data/corpfiling/AttachLive/bb8b6417-1928-46d0-9b6c-7827574c380d.pdf
