Fashion Retailers to See 15% Revenue Growth in FY25 Despite Inflation

Fashion retailers are expected to record revenue growth of up to 15% in FY25 due to network expansion, according to ICRA. Despite inflationary pressures, an increase in store networks and new product categories will drive this growth. The premium segment, however, faces a decline in average sales per square foot.

Fashion retailers are bracing for significant revenue increases, anticipating a growth of up to 15 percent in FY25, driven largely by network expansion, as per a report from ICRA.

Despite inflationary challenges, the growth is expected to be supported by new store networks and the introduction of fresh product categories, ICRA noted, maintaining a 'stable outlook' for the sector.

The operating profit margin for companies is projected to stay between 13-14 percent in FY2025, despite robust YoY revenue growth. However, premium segments showed a 3 percent contraction in average sales per square foot, while the value fashion segments regained pre-pandemic levels.

(With inputs from agencies.)