While other retailers have raised apparel prices by 10% to 15%, the company maintained its pricing throughout the September quarter to protect its value-conscious customer base. Moving forward, the planned single-digit hike is deemed necessary, though further adjustments could follow.
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“Quarter four onwards, I am sensing because there is a continuing challenge on the oil prices, so there might still be some more challenge left as far as the pricing is concerned,” Agarwal noted.
On the demand front, early third-quarter footfalls are showing robust traction as Durga Puja festivities begin in eastern India. The shift of the Puja season from the second quarter to the third slightly subdued the previous quarter’s performance and may pose a minor challenge to margins.
Despite this, overall performance is expected to remain steady and in line with the previous year.
Ground sentiment remains largely optimistic, overcoming concerns over slightly low monsoons and isolated challenges from hurricane Arnab in the last week of September. The company will release its full profitability results in early November.
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Gurugram-based V-Mart Retail shares have declined nearly 4% over the past year, while the company’s market capitalisation stands at around ₹6,296.40 crore.
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