Apparel Retailers Experience Strong Recovery in Q4FY26
Apparel retailers back on growth track on strong Q4FY26 recovery
Business Standard
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The apparel retail sector in India has rebounded in the March quarter of FY26, driven by increased same-store sales and store expansions, particularly in the value fashion segment. Major players like V-Mart and Trent report significant revenue growth, indicating a positive trend in consumer demand following previous downturns.
- 01Apparel retail sector shows recovery in Q4FY26 with 16% expected revenue growth.
- 02Value fashion segment outperforms premium retailers due to same-store sales growth.
- 03V-Mart reports a 24.5% year-on-year revenue growth, aided by store expansion.
- 04Trent achieves 20% standalone revenue growth, exceeding previous quarter expectations.
- 05Analysts predict sustained growth for value retailers amid improving consumer demand.
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The apparel retail sector in India is witnessing a robust recovery in the March quarter of FY26, following a challenging December quarter. Analysts expect a 16% year-on-year revenue growth for the sector, with value fashion retailers leading the charge. V-Mart has reported an impressive 24.5% revenue growth, driven by a 12% increase in same-store sales and the addition of 23 stores in Q4, bringing its total to 80 stores for FY26. Trent also performed well, achieving a 20% revenue growth, surpassing expectations and benefiting from higher store additions. Other retailers like V2 Retail and Bazaar Style Retail have also shown strong performance, with V2 Retail reporting a 59% revenue growth. Analysts are optimistic about the continued growth of value retailers, attributing it to factors like reduced GST rates, lower interest rates, and a recovering demand landscape.
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The recovery in the apparel retail sector is likely to boost employment and economic activity in the retail space, benefiting consumers through improved product availability and competitive pricing.
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