- Four-quarter net profit for Bata India plummeted by 28%, reaching INR 459.2 crores, largely due to a thwarted consumer demand dampening sales. The company's quarterly revenue also dropped by 1% to INR 7,880 crores, falling short of analysts' predictions of INR 8,230 crores.
- Amidst these market challenges, competitor Metro Brands surpassed profit expectations by growing its premium product segment, while Relaxo Footwears grappled with declines in revenue, profit, and footwear sales volume.
Indian subsidiary of Bata records unexpected decline in Q4 profits due to dwindling demand for footwear
Context: Bata India's profit decline and sluggish sales were attributed to ongoing demand obstacles, despite the company's efforts to boost volumes and enhance inventory management [2][4]. Gross profit and EBITDA for Bata fell 9% and 5% below analysts' expectations, respectively, due to unforeseen market conditions and operational issues [1]. Despite the decline, Bata India's shares managed to close marginally higher at INR 1,279 per share on the NSE [2].
Beyond Bata: Metro Brands and Relaxo Footwears, market rivals of Bata India, experienced market turbulence, as well. Although specific Q4 performance details for Metro Brands aren't provided in the current data, the company focuses on brand diversification and expansion into new markets [2]. Relaxo Footwears, like Bata, faces similar challenges, frequently pursuing volume growth and affordable pricing strategies to maintain market share in a competitive setting [2].
- This news was published on May 29, 2025, at 6:00 PM IST.
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- The decline in Bata India's profits and sales has sparked conversations within the retail industry, with competitors such as Metro Brands and Relaxo Footwears also grappling with challenged market conditions.
- Amidst these industry-wide challenges in the footwear sector, financial analysts are closely monitoring the advertising strategies of these companies, as marketing efforts potentially play a crucial role in reviving sales.
- As the business industry braces for potential shifts in the footwear market, finance experts predict that advertising expenditure in this sector could rise significantly in the coming months, as companies seek innovative methods to boost consumer demand and regain their market share.
