ARVINDFASN

By Aditya Kalra

NEW DELHI, Sept 4 (Reuters) - India's overhaul of consumer tax stands to make everything from soaps to luxury SUVs cheaper, but global fashion brands such as Zara, Levi Strauss LEVI.N and Lacoste have been spooked by higher levies on all apparel priced at more than $29.

The premium wear segment accounts for about 18% of an apparel industry worth $70 billion, says Datum Intelligence, spurred by a growing number of nouveau riche and brand-conscious youngsters in India.

The biggest tax reform in eight years by Prime Minister Narendra Modi's government cuts levies to 5% on garments costing less than 2,500 rupees ($29), but items priced above that figure now face a higher levy of 18%.

That will pile pressure on the likes of PVH Corp PVH.N, Marks and Spencer MKS.L, Gap Inc GPS.N, Under Armour UAA.N, Nike NKE.N, H&M HMb.ST and Japan's Uniqlo 9983.T.

Fashion companies worry about the impact of higher taxes on sales, since aspirational young people consider such purchases as a lifestyle upgrade, but remain sensitive to price, said two Indian garment executives dealing in foreign brands.

"Retail works on wafer-thin margins, and overheads like rents are extremely high," said the chief executive of a foreign garment brand operating in India, who sought anonymity for fear of government reprisal. "Growth that we were expecting earlier won't come now."

The official added, "This is not a luxury. The 2,500-rupee price point is basic now."

The higher taxes are also a double whammy for domestic garment makers whose thriving U.S. exports business is also reeling from President Donald Trump's tariffs of 50%.

India's reform has not only drastically cut consumption levies on daily essentials and consumer electronics, but dealt a surprise win on Wednesday for pricey SUVs, reducing their tax rate to a flat 40%, versus up to 50% earlier.

Carmaker Mercedes-Benz has been reporting record sales in recent months, as consumption surges.

The higher rate on apparel could spell the "death knell for the industry", the Clothing Manufacturers Association of India has said, as items costing more than 2,500 rupees are "consumed in large numbers by the common man and middle class".

Most of the 875 new arrivals listed on Superdry India's website, for example, are subject to the new 18% tax, with many jackets on offer priced upwards of $170 and shirts at $60.

On the Lacoste India website, men's T-shirts can cost as much as $99, with not one priced below $29, the new threshold for the higher tax, set to take effect on September 22.

TARIFF TO WEDDINGS

In press statements, the Association has flagged worries about the impact of the higher tax adding to the fallout from Trump's tariff salvo.

India's Arvind Fashions ARVF.NS for example, holds domestic franchisee rights for Tommy Hilfiger and Calvin Klein retail, but its affiliate, Arvind Ltd ARVN.NS, makes foreign brands for export to destinations including the United States, which has a share of roughly 30%.

The Arvind Group did not respond to a request for comment.

In India, foreign premium brands have been luring affluent youngsters by adding retail outlets and e-commerce offerings. Lululemon Athletica LULU.O plans to enter the market in 2026.

The tax hikes will also apply to apparel from luxury goods makers Louis Vuitton LVMH.PA, Dior DIOR.PA and Versace.

Some customers may opt for cheaper more tax-efficient purchases while travelling abroad, but the hike to 18% from an earlier slab of 12% will have limited impact on India's rich, said one luxury industry executive.

Another area of expenditure set for a hit will be clothes bought for weddings. Lavish marriage celebrations are big business, and urban families can easily spend thousands of dollars on items from traditional sarees to men's jackets.

"Putting these clothes in the 18% slab will result in parents compelled to make inferior clothing for their favourite child on their favourite day," the clothing association said.

(Reporting by Aditya Kalra; Additional reporting by Dhwani Pandya and Praveen Paramasivam; Editing by Clarence Fernandez)

((Email: [email protected]; X: @adityakalra;))

** Shares of Arvind Fashions ARVF.NS rise 8% to 540.5 rupees, their highest level since late-December

** Co, which retails Calvin Klein and Tommy Hilfiger brands in India, posted a 20% y/y rise in first-quarter core profit, as new store openings and a focus on higher-priced apparel helped

** About 1.2 million shares traded, 3x the 30-day avg

** Stock rated "strong buy" on avg, median PT at 672 rupees - data compiled by LSEG

** Year-to-date, stock up ~5%

(Reporting by Manvi Pant in Bengaluru)

(([email protected]; +918447554364;))

March 10 (Reuters) - Arvind Fashions Ltd ARVF.NS:

• ARVIND FASHIONS LTD - TO EXPAND CLUB A STORES ACROSS INDIA

Source text: ID:nBSE8nmQMS

Further company coverage: ARVF.NS

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Feb 5 (Reuters) - Arvind Fashions Ltd ARVF.NS:

• ARVIND FASHIONS Q3 CONSOL PAT 280 MILLION RUPEES

• ARVIND FASHIONS Q3 CONSOL REVENUE 12.03 BILLION RUPEES

Further company coverage: ARVF.NS

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** Shares of Shoppers Stop SHOP.NS rise as much as 8.7% to 674.2 rupees, highest since Nov. 5, currently up 8.1%

** The department store chain said Q3 consol net profit up ~41% Y/Y, snapping two consecutive qtrly losses

** Rev from ops up 11%, aided by strong demand for premium category

** Nearly 230,000 shares change hands, 1.5x its 30-day avg

** Nine analysts covering the stock, on avg, have a "hold" rating vs "buy" rating on rivals Tata Group-owned Trent TREN.NS and Arvind Fashions ARVF.NS, while Aditya Birla Fashion and Retail ADIA.NS rated "sell"- LSEG data

** SHOP up 10% so far this month; it fell ~24% in Q3

($1 = 86.5590 Indian rupees)

(Reporting by Ashna Teresa Britto in Bengaluru)

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** Shares of Arvind Fashions ARVF.NS rise 3.7% to 522.60 rupees, set for their best day since early Sept

** Equirus Securities starts with "long" rating and Street-high PT of 753 rupees

** Brokerage likes ARVF's margin expansion in last few years since it exited loss-making brands

** Says profitability should improve materially as benefits of last three years' corrective actions bear fruit

** Expects ~178 bps rise in operating margin and 33% profit CAGR over next 3 years

** Says with return metrics expected to improve, stock's current 10.5x EV/EBITDA makes it "attractive"

** Analysts' avg rating on ARVF rate is equivalent of "strong buy" - LSEG data

(Reporting by Nandan Mandayam in Bengaluru)

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Oct 28 (Reuters) - Arvind Fashions Ltd ARVF.NS:

• ARVIND FASHIONS Q2 CONSOL PAT 300 MILLION RUPEES

• ARVIND FASHIONS Q2 CONSOL REVENUES 12.73 BILLION RUPEES

Further company coverage: ARVF.NS

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** Shares of Arvind Fashions ARVF.NS climb as much as 2.7% to 548 rupees, last up 1.2%

** Brokerage Anand Rathi keeps "Buy" rating, ups TP to 689 rupees from 632 rupees earlier; at 29% premium on last close

** TP at Street high among five brokerages covering the stock, per LSEG data

** Anand Rathi analysts say co's focus on premiumisation across brands is key for growth prospects

** Says co's 21.6% y/y sales growth in FY24 was led by premiumisation, citing ARVF's FY24 annual report

** Sees higher retail channel mix, reduced gross working capital as key upsides

** Analysts avg rating on stock is "Buy", median PT is 585 rupees

** Over 1.9 mln shares traded, 2.5x the 30-day avg

** Including session's gains, stock up ~22% YTD

(Reporting by Manvi Pant in Bengaluru)

(([email protected]; +918447554364;))

** Shares of Indian textile companies and garment makers surge between 3-11%

** Welspun Living WLSP.NS climbs 9%, Trident TRIE.NS up 8%, Gokaldas Exports GOKL.NS jumps 11%

** KPR Mill KPRM.NS rises 6%, Arvind ARVN.NS gains 4.3%, Arvind Fashions ARVF.NS is up 3.5%, Go Fashion GOFA.NS gains 3%

** Political unrest in Bangladesh is expected to disrupt the country's clothing industry, potentially affecting global apparel retailers

** Bangladesh was the third-largest clothing exporter in the world last year

** There are some hopes that because of political unrest, big brands outsourcing their manufacturing in Bangladesh may see India as an option - Pratik Tholiya, analyst with Systematix

** Some of the business may come to India. But, the manufacturing setup in India is not as robust as Bangladesh - Tholiya

(Reporting by Sethuraman NR in Bengaluru)

(([email protected]; (+91 9945291420); Reuters Messaging: [email protected]))

Aug 1 (Reuters) - Arvind Fashions Ltd ARVF.NS:

• ARVIND FASHIONS Q1 CONSOL NET PROFIT 13.2 MILLION RUPEES

• ARVIND FASHIONS Q1 CONSOL REVENUE FROM OPERATIONS 9.55 BILLION RUPEES

Source text for Eikon: [ID:]

Further company coverage: ARVF.NS

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** Shares of department-store chain Shoppers Stop SHOP.NS are down nearly 4% to 788 rupees

** SHOP posted a loss of 227.2 mln rupees ($2.72 mln) in Q1, its first in nine quarters

** Rev growth slowed down to 7.6% from 13.3% in the Jan-Mar period

** Stock set to post fourth straight session of losses; it dropped nearly 4% in last three sessions

** SHOP avg rating is "hold" compared to "buy" for Trent TREN.NS and "strong buy" for Arvind Fashions ARVF.NS - LSEG data

** SHOP's 14% YTD rise is lesser than ARVF's 20% rise and TREN's 71.5% gain

($1 = 83.6300 Indian rupees)

(Reporting by Nishit Navin)

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May 21 (Reuters) - Arvind Fashions Ltd ARVF.NS:

• MARCH-QUARTER CONSOL NET PROFIT 243.2 MILLION RUPEES VERSUS 109.1 MILLION RUPEES

• MARCH-QUARTER CONSOL REVENUE FROM OPERATIONS 10.94 BILLION RUPEES VERSUS 10.55 BILLION RUPEES

• OVERALL MARKET ENVIRONMENT CONTINUED TO STAY SUBDUED

• DELAYED WEATHER IMPACTING SEASONALITY & CONSUMER BUYING PATTERN

Source text for Eikon: ID:nNSEbhdTZm

Further company coverage: ARVF.NS

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BENGALURU, April 29 (Reuters) - India's Shoppers Stop on Monday reported nearly a 53% rise in fourth-quarter profit, helped by demand in its beauty segment as well as luxury products.

The early start of end-of-season sales and events like Valentine's Day drove heightened sales volumes, while high-income urban consumers favoured luxury makeup and fragrances for social and professional engagements, further boosting top-line growth.

The Mumbai-based chain reported a profit before exceptional item and tax of 300.7 million rupees ($3.60 million) for the three months ended March 31, compared with 197.1 million rupees a year earlier.

It also recorded an exceptional item of 15.9 million rupees in the quarter.

Shoppers Stop, which sells products of brands like Swarovski, Versace, Michael Kors and Bobbi Brown, said its revenue from operations rose 13.3% to 10.46 billion rupees.

Peer Tata Group-owned Trent TREN.NS reported a five-fold jump in quarterly profit, while Arvind Fashions ARVF.NS and Aditya Birla Fashion and Retail ADIA.NS are yet to report results.

Shares of Shoppers Stop closed 0.6% higher ahead of the results. They rose 9.3% during the March quarter.

($1 = 83.4614 Indian rupees)

(Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by Sohini Goswami)

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Feb 13 (Reuters) - Arvind Fashions Ltd ARVF.NS:

• ARVIND FASHIONS DEC-QUARTER CONSOL NET PROFIT 510.8 MILLION RUPEES VERSUS 80.9 MILLION RUPEES

• ARVIND FASHIONS DEC-QUARTER CONSOL REVENUE FROM OPERATIONS 11.25 BILLION RUPEES VERSUS 10.73 BILLION RUPEES

• ARVIND FASHIONS - DEMAND TRENDS CONTINUE TO REMAIN SOFT; IMPROVEMENT EXPECTED BY Q1 FY25

Source text for Eikon: [ID:]

Further company coverage: ARVF.NS

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BENGALURU, Feb 7 (Reuters) - Indian retailer and hypermarket operator Trent TREN.NS reported a more-than-two-fold jump in third-quarter profit on Wednesday, driven by robust demand during the festive period.

The Tata Group-owned company reported a consolidated net profit of 3.71 billion rupees (about $45 million) for the three months ended Dec. 31, from 1.55 billion rupees a year earlier.

Shares of the company rose 10% after the results.

A surge in apparel purchases during the festive period boosted Trent's revenues, which rose nearly 51% to 34.67 billion rupees, outpacing the about 42% rise in its total expenses.

The festive period in India typically spans from October to late November.

Trent opened five Westside and 50 Zudio stores during the quarter, boosting the store counts under these brands to 227 and 460, respectively.

Its peers Arvind Fashions ARVF.NS and Aditya Birla Fashion Retail ADIA.NS will report next week.

($1 = 82.9450 Indian rupees)

(Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by Mrigank Dhaniwala)

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** Branded retailer Arvind Fashions ARVF.NS deserves higher valuation, given portfolio of marquee brands, lean balance sheet, and ample room for margin expansion- Nuvama

** Brokerage calls stock a "long-term" recommendation

** Initiates with "buy" and street high TP 660 rupees

** TP represents 39% premium to current price; Median TP at 544 rupees; Stock up 0.8% at 475 rupees on Thursday

** Nuvama sees revenue/EBITDA CAGR of 12%/22% (ex-Sephora) over FY23–26 and EBITDA/PAT CAGR of 22%/91%

** Says U.S. Polo Assn, Tommy Hilfiger, Calvin Klein generating healthy operating cash flows

** ARVF gained 19% in 2023 and is already up 16% so far this month

** ARVF is rated "strong buy" along with peer Go Fashion GOFA.NS - LSEG data

(Reporting by Sethuraman NR)

(([email protected]; (+91 9945291420); Reuters Messaging: [email protected]))

** Brokerage Antique Stock Broking starts coverage of India's Arvind Fashions ARVF.NS with a "buy" rating and TP of 565 rupees

** Says co, which retails brands like Arrow and Calvin Klein (CK), has "very strong portfolio" of brands in fast-growing casual wear category

** Focus over the next 2-3 years on scaling up existing brands and not new additions, ARVF well placed to revive Arrow, CK, Tommy Hilfiger and Flying Machine brands - note

** Adds optimism on the back of strong casual apparel market, CK's potential to turn into a power brand, corrective actions for improving supply chain and working capital

** Mean recommendation of 5 analysts is equivalent to "strong buy"; median TP is 505 rupees - LSEG data

** Stock last up 1.4%, taking YTD gains to over 26%

(Reporting by Hritam Mukherjee in Bengaluru)

(([email protected];))

BENGALURU, Nov 7 (Reuters) - India's Arvind Fashions ARVF.NS reported a 18.9% rise in the second-quarter profit on Tuesday, aided by healthy sales of clothing and footwear and as power brands helped it maintain wider margins.

The Bengaluru-based company's consolidated net profit rose to 216.6 million rupees ($2.60 million) for the quarter ended Sept. 30 from 182.2 million rupees a year earlier, sending its shares up as much as 8%.

While consumer demand continued to remain soft, Arvind Fashions' strong performance in the multi-brand outlet channel and tighter control over inventories resulted in higher profit, the company said.

The earnings before interest, taxes, depreciation, and amortization (EBITDA) margin improved by about 50 basis points from a year ago, it added.

Fashion retailers have seen a shift in demand due to a delayed festive season, which for 2023, began late October.

Usually, the festive season aids companies clock higher annual sales as customers spend on clothes, accessories and footwear.

Arvind Fashions, which has a portfolio of owned and licenced international brands such as Arrow and Calvin Klein, said its consolidated revenue from operations rose 7% to 12.67 billion rupees in the September quarter.

Revenue from so-called power brands like US Polo and Tommy Hilfiger, which accounts for more than 80% of the total, rose 5%.

The company's emerging brands segment clocked a 19% jump in revenue while the footwear segment posted revenue growth of about 20%.

Last week, Arvind Fashions exited its Sephora India business as the company sold its beauty brands division to billionaire Mukesh Ambani's retail unit Reliance Retail.

Rival Shoppers Stop SHOP.NS last month reported a drop in the second-quarter profit.

Tata Group-owned Trent TREN.NS, that operates retail chain Westside, reported a near three-fold surge in profit on Tuesday.

($1 = 83.2600 Indian rupees)

(Reporting by Dimpal Gulwani in Bengaluru; Editing by Mrigank Dhaniwala)

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Recasts with details from Reliance, Arvind Fashions' statements

BENGALURU, Nov 3 (Reuters) - Billionaire Mukesh Ambani's Reliance is tying up with LVMH-owned LVMH.PA Sephora to operate the beauty chain's stores in India and help expand Sephora's presence in the country's fast-growing beauty and cosmetics market.

India's largest retailer Reliance, which launched its own beauty retail platform called Tira in April to take on the likes of Nykaa FSNE.NS and the Tata Group, will now take over Sephora's 26 stores in India from Arvind Fashions ARVF.NS.

Arvind Fashions had partnered with the French brand for the last eight years.

"The partnership gives RRVL (Reliance Retail Ventures Ltd) exclusive rights to build and enhance Sephora’s presence in India across channels," Reliance Retail said in a statement.

Sephora's products range from make-up to skincare. The chain also retails luxury brands such as Dior and Tom Ford offline and online and recently became the exclusive retailer for pop star Selena Gomez's Rare Beauty brand in India.

The 990.2 million-rupee ($11.89 million) deal between Reliance and Arvind Fashions comes months after local media reported that Sephora and Reliance Retail had abandoned talks to form a retail partnership for the Indian market.

Beauty retailers in India are vying to attract customers as demand for clean beauty and celebrity-owned brands grows. Brands such as Nykaa, Tira, and Shoppers Stop recently expanded their offerings in the hopes of attracting and keeping customers.

"Rising affluence, increasing urbanisation and the proliferation of social media have driven greater awareness of self-care and beauty, unlocking major opportunities for prestige beauty," Sephora's Asia President Alia Gogi said.

Shares of Arvind Fashions surged 11.5% after the news, before trimming some gains to close 5.8% higher.

The beauty division that hosted Sephora reported a revenue of 3.37 billion rupees in fiscal 2023, or about 7.6% of Arvind Fashions' total revenue.

The company will use proceeds from the deal to invest in its brands and repay debt.

($1 = 83.2510 Indian rupees)

(Reporting by Chris Thomas in Bengaluru; Editing by Janane Venkatraman)

(([email protected];))

** Shares of Arvind Fashions ARVF.NS rise as much as 5% to 377.3 rupees, highest level since Nov 2

** Brokerage Systematix Institutional Equities initiates stock with "buy" rating; TP of 515 rupees

** Sustained product innovation, increased marketing spends helped ARVF premiumise key brands - Systematix

** Expect ARVF to retain leadership in cash generation and EBITDA/PAT growth, despite co's focus on profitable revenue growth raising fears of growth slowing in near term

** Flags prolonged slowdown in demand, enhanced competition,

failure to scale up focus brands as key risks

** More than 493,000 shares change hands by 11:12 a.m. IST, 1.6x the 30-day avg

** Stock up 8.6% YTD

(Reporting by Anisha Ajith in Bengaluru)

(([email protected];))

Aug 10 (Reuters) - Arvind Fashions Ltd ARVF.NS:

• JUNE-QUARTER CONSOL NET LOSS 164.3 MILLION RUPEES VERSUS LOSS 5.1 MILLION RUPEES

• JUNE-QUARTER CONSOL REVENUE FROM OPERATIONS 9.57 BILLION RUPEES VERSUS 9.2 BILLION RUPEES

• DEMAND ENVIRONMENT REMAINS SOFT

• EXPECT TRENDS TO IMPROVE GRADUALLY BY FESTIVAL SEASON

Source text for Eikon: ID:nBSE5C0Wb7

Further company coverage: ARVF.NS

(([email protected];))

** Shares of Arvind Fashions Ltd ARVF.NS jump up as much as 4.95% to 279 rupees, in highest intraday rise since March 16

** Co posts consolidated net profit of 109.2 mln rupees ($1.32 mln) vs 7.8 mln rupees yr ago; revenue up 24%

** Nearly 700,000 shares change hands by 2:30 PM IST, highest since Dec. 23, 2022

** Including session's moves, stock down ~21% so far this year

($1 = 82.7346 rupees)

(Reporting by Hritam Mukherjee in Bengaluru)

(([email protected];))

By Praveen Paramasivam

CHENNAI, April 27 (Reuters) - India's Shoppers Stop Ltd SHOP.NS on Thursday said it expects its revenue to grow in double-digits this fiscal year, as the department store chain aims to bring in more brands and add two dozen stores.

The retailer seeks to open between 10 and 12 department stores and a similar number of beauty stores in the year ending March 2024, after launching a combined 23 stores last fiscal, Chief Executive Venu Nair told Reuters.

It ended the previous fiscal year with 270 locations.

Shoppers Stop, which is spread across 52 cities, is focusing on opening department stores in new locations, mainly in non-metro cities, Nair said.

Several apparel and footwear chains including Metro Brands Ltd METB.NS and Arvind Fashions Ltd ARVF.NS, which sells Calvin Klein in India, are also doubling down on smaller cities to tap the growing middle class.

With brands scrambling for workers to charge their expansion, Nair said labour availability is "an area which needs to be kept an eye on," with Shoppers Stop employing 40-100 workers at each of its department stores and 8-10 workers at all of its beauty outlets.

The company is also sharpening its focus on its beauty business, acquiring the exclusive distribution for 15 brands last year to cash in on the growing demand for skincare and makeup products from consumers returning to their post-pandemic lifestyles.

Shoppers Stop last month signed a distribution deal with Japan's Shiseido Co Ltd 4911.T to launch its Nars Cosmetics in India.

However, Nair said sales in February and March were "muted," partly due to high inflation, although he said Shoppers Stop has recorded some improvements in the second-half of April.

He also added there could be some price cuts as apparel and textile raw material prices have come down in recent months.

Shoppers Stop on Wednesday swung to a quarterly profit, benefitting from demand for beauty products and higher margin private-label clothing.

(Reporting by Praveen Paramasivam in Chennai; Editing by Sonia Cheema)

(([email protected]; +91 867-525-3569;))