Metro Brands witnesses 6% dive as Q3 numbers reveal 12.6% YoY profit decline

Metro Brands faced a 6 percent downturn, falling to Rs 1,140 in early trade on January 19, a day after unveiling a lackluster performance in the third quarter.

The company reported a 12.6 percent YoY decline in net profit, totaling Rs 98.78 crore for the December quarter of FY24. Despite a 6.14 percent increase in revenue, reaching Rs 635.50 crore from Rs 598.7 crore in the year-ago quarter, as per the regulatory filing.

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As of 9:20 am, Metro Brands was trading at Rs 1,160 on the National Stock Exchange, marking a 4.4 percent drop from the previous close. Over the past year, the stock had seen a substantial gain of nearly 33 percent.

Metro Brands emphasized its physical expansion strategy, unveiling the addition of 31 new stores in the quarter, bringing the fiscal year’s total to 87, aligning with the year-end goal of reaching 100 stores. Simultaneously, the company revealed plans to liquidate FILA inventory and close a majority of Exclusive Brand Outlets (EBOs) by the end of FY 2023-2024.