Footwear retailer Metro Brands Ltd plans to add about 260 stores by the end of FY25 across formats including Metro Shoes and Mochi. The company saw robust growth in the June quarter despite inflationary pressures.
Nissan Joseph, CEO, Metro Brands Ltd told BusinessLine, “This has been the first Covid-free quarter and shows the robustness of the brick and mortar retail in India with consumers getting back to offline shopping strongly. During the quarter we witnessed strong sales performance across all town classes and across all our concepts. With our focus on the omni-channel strategy, growth momentum on online sales too continued.”
The company’s consolidated revenue from operations for the quarter ended June 30, surged to ₹507.9 crore compared with ₹131.4 crore in the corresponding quarter in the previous fiscal. Net profit stood at ₹105.8 crore against a net loss of ₹12.1 crore in the corresponding quarter in the previous fiscal. “We have seen business continue the momentum that we saw as early as Q3 of FY 22, and now has resulted in our strongest quarter in our history of Metro Brands,” he added.
Metro Brands operates 644 stores and said that its pace of store expansion was on track with net addition of 20 stores across all formats in the June quarter. The company operates its stores under various brands including Metro Shoes, Mochi and Walkway. It also operates exclusive brand stores for third-party brands including Crocs and Fitflop.
Joseph added, “We plan to add 260 stores over the next three years. This will be done across all our concepts.
Talking about inflationary pressures, Joseph said that the company continued to focus on maintaining adequate inventory and front-loading of inventory in close coordination with vendor partners to mitigate sharp rises in pricing. “We took a price increase on an average in the 7 per cent range in the quarter across select products. We are closely monitoring the impact of inflationary pressures but we are not seeing anything of substantial nature. In fact, there were expectations that inflationary pressures may hit tier-3 markets the hardest but even tier-3 markets continue to perform well. So overall it has been a very successful quarter,” he added.