Page Industries, which licenses loungewear products and loungewear brand Jockey International in India, reported a drop in first-quarter profit of almost 24% on Thursday, due to weak demand. .
The company, which also licenses swimwear brand Speedo in India, said its profit fell to 1.58 billion rupees ($19.09 million) for the quarter ended June 30, from 2.07 billion rupees a year earlier.
The Bengaluru-based company, which also manufactures and distributes casual wear, reported a 7.5% drop in operating income to Rs 12.40 billion.
However, the company’s revenue was up 102% sequentially on the back of a sequential 31% increase in sales volume.
Its profit margin fell to 12.8% in the quarter from 15.4% last year, but increased from 8.1% in the previous quarter.
“There has been a buildup of excess inventory impacting the entire ecosystem and resulting in unsustainable business practices,” the company said.
“As online platforms have become the preferred way to shop, the e-commerce segment is poised for accelerated growth,” he added.
On Wednesday, rival Trent beat its revenue estimates for the first quarter, thanks to higher turnout and store expansions.
Page Industries shares were up nearly 2% following the results.
($1 = 82.7840 Indian rupees) (Reporting by Kashish Tandon in Bengaluru; editing by Eileen Soreng)
