Metro Brands shares slump 6% after Q3 earnings miss estimates
Metro Brands, one of the largest Indian footwear specialty retailers, slumped by 6% in today's early trade, reaching ₹1,140 apiece after the company's earnings missed the street estimates. Also Read: Medi Assist IPO allotment finalised; here's how to check allotment status In Q3 FY24, the company posted a consolidated net profit of ₹99 crore, reflecting a 12.4% decline from the ₹113 crore net profit reported in Q3 FY23, driven by a sharp rise in expenses and a slowdown in sales. On a sequential basis, however, the net profit exhibited a 45% improvement compared to the preceding quarter's ₹68 crore.
The revenue from operations in the quarter recorded 6.17% YoY growth, reaching ₹636 crore. Notably, this represents the slowest growth since the company went public in December 2021, although it stands as the highest-ever quarterly revenue for the company. Also Read: Nifty 50, Sensex gain nearly 1% each after 3 days of losses: 5 reasons why Indian stock market is gaining today During the reporting quarter, Metro Brands experienced a notable increase in both employee and finance costs, rising by 21% and 23% YoY, respectively.
Other expenses also surged by 13.21% YoY. The company opened 31 new stores in Q3 FY 2023–2024, bringing the total new store count to 87 stores this fiscal year. With this expansion, the company is firmly advancing on its trajectory to meet the target of 100 stores for FY 2023–2024, Metro Brands said in its earnings report.
During the quarter, the company signed a long-term partnership agreement with Foot Locker, Inc., the New York-based specialty athletic retailer. The partnership grants MBL exclusive rights to own and operate Foot Locker stores in India. The company said it is currently in the process of
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