Fashion retailers may see up to 15% revenue growth in FY25: Report

Fashion retailers are likely to record revenue growth of up to 15 per cent in FY25 on the back of network expansion, according to a report by ratings agency Icra.

The network expansion of fashion retailers would support revenue increases in the current fiscal year despite inflationary headwinds, said Icra, while giving a "stable outlook" on the fashion retail segment.

"The operating profit margin (OPM) of its sample set of companies is likely to remain in the range of 13-14 per cent in FY2025. This is despite a robust 14-15 per cent YoY (Year-on-Year) revenue growth estimated for the year, supported by network expansion," it said.

Icra expects fashion retailers to report marginal sequential sales growth in Q2 FY2025, especially with the shift from the festive season to Q3 this year.

"The revenue growth is likely to pick up during the festive season, which coupled with regular network expansion, is expected to result in a 14-15 per cent YoY revenue expansion in FY2025," it said.

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