Brand Concepts Ltd Q2 net profit falls 51 percent to Rs 2 crore

Brand Concepts Ltd, a luggage and accessories retailer reported a 51 percent decline in net profit to Rs 2 crore ($2,36,822) for the second quarter ended September 30, as against Rs 4 crore in the year-ago quarter.

The company’s revenue for the quarter rose marginally by 2 percent to Rs 71 crore, as against Rs 69 crore in the corresponding quarter of the previous fiscal year.

During the July-September quarter, the company expanded its retail presence with the addition of 5 new stores taking its total count to 44 stores.

Commenting on the results, Abhinav Kumar, CEO of Brand Concepts in a statement said, “We have shown flattish growth on topline, while at EBITDA, adjusted for ESOP expenses, we have improved on our EBITDA margin on a QoQ basis in spite of pressure of higher royalty payout, increased cost of consultants for our new upcoming manufacturing plant and expanding our teams on the growth front.”

“We have witnessed significant traction in our leading brands Tommy Hilfiger and UCB. Our recent signing of Juicy Couture (with ABG Group) in the women’s handbag and other key categories, adds to our growing portfolio, filling our product gaps and increasing our offerings at different price points across multiple channels,” he added.

Brand Concepts Ltd is an omnichannel is fashion and lifestyle retailer with licenses for brands like Tommy Hilfiger, Aeropostale, and United Colors of Benetton. Its private label brands include Sugarush and The Vertical.