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Arvind Fashions to raise ₹200 cr
05 Feb '21
2 min read
Pic: Arvind Fashion
Arvind Fashions Limited’s (AFL) board has approved issue of equity shares for an amount up to ₹200 crore on rights basis and the company intends to utilise the raised funds to strengthen its balance sheet and for general corporate purposes, including working capital for growth, it recently said in a filing to the Bombay Stock Exchange (BSE).
AFLA is the retailer of brands like Calvin Klein, Tommy Hilfiger and US Polo Assn.
In July, Walmart-owned Flipkart had picked up about 27 per cent stake in AFL’s newly-formed subsidiary Arvind Youth Brands, which owns denim label Flying Machine. In the third quarter ended December, AFL stated that Flying Machine registered 70 per cent online growth aided by Flipkart strategic partnership.
AFL on Wednesday widened its consolidated net loss to ₹66.62 crore for the quarter ended December as the impact of the pandemic persists. It reported a 14.22 per cent drop in revenue in the third quarter.
In the stock exchange filing, the fashion retailer said revenue, however, grew sequentially by 106 per cent, led by strong festive season and winter shopping, along with increased footfall across stores as lockdown gradually lifted and continuing progress in the ecommerce channel.
The company said its online channel sales increased by 130 per cent year on year in the third quarter and direct-to-consumer online sales witnessed 3.3 times growth over last year and now comprise 38 per cent of its digital sales. Innerwear and footwear division is on the growth path, the company said.
It added that the company is optimistic of sales in the upcoming season with the benefit of lower inventory level, new ways of buying resulting in freshness of stock across channels and improved customer sentiment, barring any rise in COVID-19 pandemic cases.
AFLA is the retailer of brands like Calvin Klein, Tommy Hilfiger and US Polo Assn.
In July, Walmart-owned Flipkart had picked up about 27 per cent stake in AFL’s newly-formed subsidiary Arvind Youth Brands, which owns denim label Flying Machine. In the third quarter ended December, AFL stated that Flying Machine registered 70 per cent online growth aided by Flipkart strategic partnership.
AFL on Wednesday widened its consolidated net loss to ₹66.62 crore for the quarter ended December as the impact of the pandemic persists. It reported a 14.22 per cent drop in revenue in the third quarter.
In the stock exchange filing, the fashion retailer said revenue, however, grew sequentially by 106 per cent, led by strong festive season and winter shopping, along with increased footfall across stores as lockdown gradually lifted and continuing progress in the ecommerce channel.
The company said its online channel sales increased by 130 per cent year on year in the third quarter and direct-to-consumer online sales witnessed 3.3 times growth over last year and now comprise 38 per cent of its digital sales. Innerwear and footwear division is on the growth path, the company said.
It added that the company is optimistic of sales in the upcoming season with the benefit of lower inventory level, new ways of buying resulting in freshness of stock across channels and improved customer sentiment, barring any rise in COVID-19 pandemic cases.
Fibre2Fashion News Desk (DS)
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