Demand recovery, expansion plans may keep apparel retailers in fashion

Aggressive expansion, online sales, and margin gains are positive for ABFRL and Trent

The stocks of apparel retail companies are witnessing an up-move over the past couple of trading sessions despite weakness in the markets and the benchmark indices. Trent, Aditya Birla Fashion Retail (ABFRL), and V-Mart Retail have gained 3-9 per cent amid expectations of demand recovery and improvement in profitability. Gradual reopening of stores, rising footfall, and higher discretionary spending have led to greater investor interest in these stocks. 

In a recent report on V-Mart Retail, analysts at Antique Stock Broking highlighted that consumer sentiment has changed towards indulgence and discretionary, as the shift is towards occasion-buying against last year's need-based buying.