Big shoes to fill for footwear firms as near-term margin worries bite

Relaxo lags behind peers in the quarter, given demand weakness, price cuts, and higher input costs

Results for listed footwear makers in the July-September quarter were a mixed bag. While revenue growth for most of the bigger players was strong, margins were weighed down by raw material costs, advertising expenses, and volume pressures.

A majority of the players indicated demand weakness, especially in the mass-market segment, due to inflationary pressures and demand contraction in the semi-urban and rural markets.

Stock prices of major players are down over 5 per cent since their November highs, with Campus Activewear witnessing the highest selling pressure. The stock shed 18 per cent from its monthly highs, with 10.3 per cent