Go Fashion hits 52-week low, tanks 11% on weak Q4 earnings; profit down 12%

Shares of Go Fashion (India) hit a 52-week low of Rs 944, as it tanked 11 per cent on the BSE in Friday’s intra-day trade, after reporting a weak March quarter earnings of the financial year 2023-24(Q4FY24). The company's profit after tax (PAT) declined 12 per cent year-on-year (YoY) to Rs 13.1 crore.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) margin contracted 180 basis point year-on-year (YoY) to 29.7 per cent from 31.5 per cent in Q4FY23.

Total revenue, however, grew 15 per cent to Rs 181.70 crore, against Rs 157.60 crore in the corresponding quarter of the previous year. Same Store Sales Growth (SSSG) for EBOs grew by 1 per cent for Q4FY24 as compared to Q4FY23 and was flat for FY24.

 

The management said that the retail industry has witnessed a temporary decline in demand due to higher inflation and changing spending patterns. With prices on the rise, consumers are becoming more cautious with their purchases, favoring essential goods over discretionary spending. This has led to several retailers experiencing reduced foot falls impacting performance.

Although the near-term outlook for the industry seems challenging, the underlying fundamentals remain strong for the long term, the management said.

Go Fashion (India) is a women’s bottom-wear brand in India, with a market share of approximately 8 per cent in the branded women’s bottom-wear market. The company is engaged in the development, design, sourcing, marketing and retailing of a range of women’s bottom-wear products under the brand, ‘Go Colors’.

At 02:45 pm; the stock erased most of its losses and was trading 2 per cent lower at Rs 1,040.55 on the BSE. In comparison, the S&P BSE Sensex was down 1.4 per cent at 73,595. The stock price of Go Fashion had hit a record low of Rs 861.90 on March 14, 2022. It corrected 33 per cent from its 52-week high level of Rs 1,403.95 touched on September 11, 2023.