Metro Brands Q2FY25 results: Net profit increases 4% to Rs 69.55 cr

Indian footwear retailer Metro Brands missed second-quarter profit estimates on Wednesday, as higher expenses weighed on muted sales growth.

The footwear retailer reported a consolidated net profit after tax of Rs 69.55 crore ($8.3 million) in the quarter ended Sept. 30, up 4 per cent from a year ago.

Analysts, on average, were expecting Rs 76.74 crore, according to data compiled by LSEG.

Revenue from operations rose 5 per cent to Rs 585 crore, while expenses rose 7.9 per cent to Rs 515 crore.  KEY CONTEXT

Indian apparel and footwear retailers have been hurt by fewer wedding days and a weak demand environment, which has constricted overall market performance, said analysts at Elara Capital.

 

This was reflected in the earnings of Shoppers Stop, which reported a loss for the second straight quarter on Tuesday. Its CEO attributed it to fewer wedding dates, extended rains and overall weak discretionary spending.

However, Metro Brands said it expects demand recovery in the second half of the financial year, driven by festive and wedding season spending.

Metro's peers Relaxo Footwears and Bata are yet to report second-quarter results.