Q1 2025 Campus Activewear Ltd Earnings Call Transcript
Key Points
- Campus Activewear Ltd (BOM:543523) reported a volume growth of 3% year on year in Q1 FY25, amounting to 5.8 million pairs of footwear.
- The company maintained its gross margins at 53.3% despite a decline in revenue due to extreme summer conditions.
- Campus Activewear Ltd launched 78 new designs in Q1, showcasing its focus on innovation and consumer preferences.
- The company expanded its distribution network by adding a new LFS account and 13 new EBOs, increasing its total count to over 75 EBOs.
- Campus Activewear Ltd's extensive distribution network now includes over 23,100 retailers across India, enhancing its market reach.
- Revenue declined due to extreme summer conditions, resulting in fewer in-store footfalls and lower wedding dates.
- The increase in minimum wages mandated by the government impacted margins, and the company chose not to pass on these higher costs to consumers.
- The average selling price dropped to INR585 in Q1, driven by a higher saliency of open footwear.
- The EBITDA margin stood at 15.8% in Q1, affected by higher employee costs driven by headcount reduction and inflation.
- The company's B2B online business saw a decline, although this was partly mitigated by growth in the marketplace channel.
Ladies and gentlemen, good day, and welcome to the Campus Activewear Limited Q1 FY25 earnings conference call. (Operator Instructions)
Before we proceed on this call, let me remind you that the discussion may contain forward-looking statements that may involve known or unknown risks, uncertainties, and other factors. It must be viewed in conjunction with our business that could cause future results, performance or achievements to differ significantly from what is expressed or implied by such forward-looking statements. The Campus Activewear management team is represented by Mr. Nikhil Agarwal, Whole-Time Director and CEO, and Mr. Sanjay Chhabra, CFO.
I now hand the conference over to Mr. Nikhil Agarwal, Whole-Time Director and CEO, for his opening remarks. Thank you, and over to you, sir.
Thank you, Yousuf. Good evening, ladies and gentlemen. I thank you all for joining our Q1 FY25 earnings call today. Despite the challenging market environment, Campus
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