Metro Brands (METROBRAND) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw muted demand and growth due to industry headwinds, fewer wedding dates, election-related business day losses, and subdued footfall from heatwaves, but operational discipline maintained strong margins.

• Standalone EBITDA margin for the quarter was 32%, with all key metrics at or above guidance ranges.

• Premium product sales (INR 3,000+) rose to 54% from 49% YoY, and in-house brands contributed 73% of revenue at MBOS.

• Net addition of 15-17 stores in the quarter, with a target of 225 new stores over FY25 and FY26.

• Exclusive distribution agreement signed for New Era, expanding premium accessory offerings.

Financial highlights

• Consolidated revenue for Q1 FY25 was Rs 576 crore, nearly flat year-over-year; standalone revenue was Rs 563 crore.

• Gross margin held steady at 59.5%-60% despite sales softness.

• Consolidated EBITDA margin at 31.3%, standalone at 32% for the quarter.

• PAT margin at 16.4% standalone and 16% consolidated, with net profit at Rs 92 crore.

• Fila business loss reduced by 55% YoY to approximately INR 6 crore.

Outlook and guidance

• Guidance maintained for EBITDA around 30% and PAT between 15%-17%.

• Long-term sales CAGR guidance at 15%-18%, with short-term guidance at 12%-15% factoring in Q1 softness.

• H2 expected to be stronger, with Q3 anticipated as the normalization point for sales.

• Store expansion on track with a target of 225 new stores (excluding Fila) in FY25 and FY26.

• FILA re-launch planned leveraging Foot Locker and Metro/Mochi distribution, with new FILA EBOs to restart in FY26.