India fashion retailer Trent tumbles 11% as revenue growth disappoints
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- Trent shares plunged over 11% on Tuesday after the company's first-quarter revenue growth missed earnings targets
- Trent reported standalone revenue of 56.66 billion rupees ($595 million) for the quarter ended June, up 19% year-on-year
- Citigroup was expecting 23% revenue growth and remains "cautious on Trent," citing weak revenue per square foot, increasing competition, cannibalization, and new-store expansion in smaller cities
- Trent operates fast-fashion stores in India under the Westside and Zudio brands, with a portfolio of 1,312 stores at the end of June
- Trent shares are still up 4.3% since the start of the year, even as India's benchmark Sensex is down nearly 8%
Why it matters: The 11% plunge underscores that a 19% growth print — strong in absolute terms — still wasn't enough for a market that expected 23%. With 1,312 stores and ongoing expansion into smaller cities, Citigroup's cannibalization and revenue-per-square-foot concerns suggest the miss may be structural, not a one-quarter blip.
