Campus Activewear Q1 Results Review - Volumes Grow By 3% In Subdued Demand Scenario: Yes Securities

Yes Securities Report

Campus Activewear Ltd. registered topline decline of 4%YoY wherein volumes grew by 3%YoY (two-year compound annual growth rate stood at 2%) while ASP declined by 7%YoY due to higher contribution from open footwear category which constituted 22% of topline versus 18% in Q1 FY24.

Consequently, the contribution of greater then Rs 1,500 constituted 40% of sales versus 46% in Q1 FY24. Incrementally new hiring and increase in minimum wage led to higher employee cost, which weighed on operating margins along with reduction in ASP and higher other cost. Hence, Ebitda margins came in at 15.3% versus 18.7%/17.6% in Q1 FY24/Q4 FY24 respectively.

During the quarter, Campus Activewear has added 8 new distributors and couple of super-stockist to take the total reach to 23,100+ retail touchpoints. A new LFS account has also been added where products would be available in all their stores in three-four quarters.

Campus Activewear has opened 13 new Exclusive Brand Outlet (7 Company Owned Company Operated+ 6 Franchise Owned Franchise Operated) taking total count to 275. direct-to-consumer channel contributed 48% to revenue versus 46.4% in Q1 FY24. Working capital days stood at 39-days versus 29-days in FY24.

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