Campus Activewear (CAMPUS) Q1 24/25 earnings summary

Executive summary

• Achieved 3% year-on-year volume growth in Q1 FY25, selling 5.8 million pairs despite challenging market conditions, extreme summer weather, and lower wedding-related demand.

• Revenue from operations for Q1 FY25 was INR 339.2 crores, a 4.1% year-on-year decline, with ASP down 6.9% to INR 585.

• Maintained gross margins at 53.3% despite revenue decline and increased open footwear sales, which shifted the revenue mix.

• Launched over 75 new designs and expanded distribution with a new LFS account and 13 new EBOs, bringing total EBOs to over 275 and retail touchpoints to 23,100+.

• Board approved unaudited financial results and reappointments of key executives for three years from December 2024.

Financial highlights

• Operational revenue for Q1 FY25 was INR 339.2 crores, down from INR 353.8 crores in Q1 FY24.

• EBITDA stood at INR 54 crores with a margin of 15.8%, impacted by higher employee costs but offset by lower finance costs.

• PAT for the quarter was INR 25.4 crores, with a PAT margin of 7.4%.

• Advertising & sales promotion spend increased 41.3% year-on-year to INR 25.5 crores.

• Basic and diluted EPS for Q1 FY25 was ₹0.83, compared to ₹1.03 in Q1 FY24.

Outlook and guidance

• Anticipates demand recovery post-monsoon and further momentum from the festive season.

• Focus on product diversification, premiumization, and omni-channel experience, with plans to deepen presence in Western and Southern India and enhance focus on women and kids segments.

• Expects category growth in sports and leisure to remain in the lower double digits for FY25, aiming to grow in line or faster than the category.

• No further ASP drop anticipated; expects normalization as seasonal effects wane.

• Aspires to return to normalized EBITDA margins of 17-18% as demand stabilizes.