Zudio, Westside Operator Trent's Share Price Falls 9% On Q2 Profit Miss
The net profit of the operator of Zudio and Westside brands, Trent, rose to Rs 335 crore in the July–September quarter, missing Bloomberg's estimate of Rs 431 crore.
Shares of Trent Ltd., a Tata-owned retail company, tumbled nearly 9% on Thursday after its second-quarter profit missed analysts' estimates. The net profit of the operator of Zudio and Westside brands rose to Rs 335 crore in the July–September quarter, compared to Rs 228 crore in the same period last year. Analysts polled by Bloomberg had a consensus estimate of Rs 431 crore for the fashion retail major's bottom line.
"Consumer sentiment has remained relatively muted. This coupled with seasonality has meant that retail businesses have faced headwinds," said Noel N. Tata, chairman of Trent.
"The market opportunity associated with building brands and a pure-play direct-to-customer business like ours remains immense. We continue to pursue our expansion programme and deepen our store presence with the aim of being ever closer and more convenient to customers," Tata said.
Shares of Trent fell as much as 8.72% to Rs 6,348.70 apiece. The stock pared losses to trade 8.60% lower at Rs 6,357 apiece as of 01:22 p.m. This compares to a 1.1% decline in the NSE Nifty 50 Index.
The stock has risen 109.78% on a year-to-date basis. Total traded volume so far in the day stood at 3.8 times its 30-day average. The relative strength index was at 23.70.
Out of 21 analysts tracking the company, 13 maintain a 'buy' rating, four recommend a 'hold,' and four suggest a 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 4.6%.
