India covid-19 pandemic stars India

Pandemic makes Trent’s Q1FY21 performance seem lacklustre

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₹96 crore, below analysts’ estimates. Covid-19 lockdown forced Trent to close its stores for a major part of the quarter.Trent mainly operates stores across five concepts— Westside, Zudio, Star, Landmark and Utsa; with Westside as its flagship chain.For the quarter, the extended store closures meant the company had to make incremental provisioning with respect to inventories estimated at over ₹40 crore.

Input costs declined by 77%, slower than the rate of decline in revenues. This weighed heavily on the gross margins, which tumbled to about 13% from 53% in last year’s June quarter.Further, employee costs fell at a slower pace of 18% whereas other expenses declined by 58%.

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