Apparel retailers' Q2 margins to remain weak on high discounts, poor demand

Shift in consumers' preferences to value-based purchase and extension of 'end of season sale' compound retailers' woes

Profit margins of branded apparel retailers are likely to remain under pressure during the September quarter, due to higher discounting, shift in consumers’ preferences to value-based purchases and extension of the ‘end of season sale’ period.

The June quarter was very good for these companies, but that trend will reverse in september. Branded apparel retailers, including Aditya Birla Fashion & Lifestyle, Future Lifestyle Fashions, Shopper Stop, Trent, Gokaldas Exports and Page Industries had reported a significant growth in their profit margins for the quarter ended June. Data compiled by global consultancy firm Wazir Advisors showed profit margins of Aditya Birla