Why are Trent's shares falling?

Trent's shares are falling due to moderated growth expectations and increased competitive pressure in the value fashion segment.

What challenges is Zudio facing?

Zudio is facing market share erosion from new entrants and slower acceptance in smaller towns, impacting its overall performance.

How is DMart performing amid new competition?

DMart's like-for-like growth has slowed to about 5% due to the rise of quick commerce and online grocery platforms.

Home / Business and Economy / Value Fashion Giants Face Growth Slump

Value Fashion Giants Face Growth Slump

7 Jan

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Summary

Trent's shares declined over 8% due to slower growth expectations.
Zudio faces increased competition, impacting market share.
DMart's like-for-like growth slowed to 5% due to online platforms.

Trent's stock experienced a significant drop of over 8%, reflecting investor concerns over moderating growth and intensifying competition within the value fashion segment. Analysts attribute the sharp correction to a valuation de-rating rather than just earnings downgrades.

The company's expected revenue growth has been revised downwards to 15-17% from 20-25%, largely due to a subdued like-for-like (LFL) growth of 2-3%. Zudio, in particular, is facing pressure as new competitors aggressively expand, and its acceptance in smaller towns has been slower than anticipated.

In contrast, Avenue Supermarts (DMart) shows relatively better performance, though its LFL growth has decelerated to approximately 5% owing to the rapid expansion of quick commerce and online grocery platforms. Jubilant FoodWorks in the QSR sector maintains a positive outlook with stable LFL growth.