Metro Brands slips 6% after Q3 net profit slumps

Metro Brands Limited crashed 6 percent to Rs 1,140 in the early trade on January 19, a day after the company announced a weak set of numbers for the third quarter.

Net profit declined 12.6 percent year-on-year to Rs 98.78 crore for the December quarter of FY24. It reported a revenue of Rs 635.50 crore, up 6.14 percent from Rs 598.7 crore in the year-ago quarter, the company said in a regulatory filing.

At 9.20 am, the counter was trading at Rs 1,160 on National Stock Exchange, down 4.4 percent from the previous close. In the last year, the stock has gained nearly 33 percent.

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The company outlined a strong expansion in its brick-and-mortar presence, opening 31 new stores in the quarter. The new store count has for this fiscal has risen to 87, aligning with the target of 100 by the end of the year.

The company is in the process of liquidating FILA inventory and closing a majority of Exclusive Brand Outlets (EBOs), to complete these actions by the end of FY 2023-2024.

In FY 2024-2025, there is a strategic plan to reposition the FILA brand, and the focus in FY 2025-2026 will be on stimulating growth and enhancing prominence in the athleisure industry, it said.

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