Metro Brands (METROBRAND) Q2 24/25 earnings summary

Executive summary

• Standalone revenue grew 5.1% year-over-year in Q2 FY25, with consolidated revenue at ₹585.45 crore and PAT at ₹71.77 crore; H1 FY25 consolidated revenue reached ₹1,162 crore and PAT ₹164.04 crore, despite margin pressures from inventory liquidation.

• Business improved sequentially from Q1 to Q2, with strong Crocs sales and premium products (over INR 3,000) accounting for 53% of sales.

• Opened 40 new stores (net 35) in H1 FY25, on track for 100+ new stores in FY25; e-commerce contributed over 10% of total sales.

• Strategic partnerships and exclusive distribution agreements with global brands like Foot Locker and New Era to strengthen the sports & athleisure segment.

• The group operates a single business segment: trading of fashion footwear, bags, and accessories in India.

Financial highlights

• Q2 FY25 consolidated revenue was ₹585 crore, up 5.4% year-over-year; PAT grew 6.1% to ₹72 crore.

• EBITDA margin for H1 FY25 was 28.9%, down from 30.1% in H1 FY24; Q2 EBITDA margin was around 29%.

• Gross margin declined to 57.2% in H1 FY25, mainly due to liquidation of excess FILA inventory at high discounts.

• E-commerce revenue for H1 FY25 was ₹123 crore, representing 10.9% of total revenue.

• Cash generated from operations in H1 FY25 was ₹284.79 crore, up from ₹235.47 crore in H1 FY24.

Outlook and guidance

• FY25 revenue growth guidance maintained at 14-15%, with expectations of continued sequential improvement and demand recovery in H2 driven by festive and wedding season.

• Store addition guidance of 100 net new stores for FY25 remains, with flexibility based on market conditions.

• Focus on relaunching FILA and leveraging new partnerships to expand sports & athleisure offerings.

• H2 expected to benefit from festival and wedding season, with sales tracking in line with expectations.

• The company continues to focus on expanding its retail footprint and optimizing working capital.