Q1 2027 Go Fashion (India) Ltd Earnings Call Transcript
Key Points
- Same-store sales growth (SSG) turned positive at 0.6% for the video channel, with same-cluster sales growth at 1.2%, marking the first positive SSG in several quarters.
- The LFS (Large Format Stores) channel showed genuine recovery, growing 2% year-on-year to INR50 crores, signaling a return to normalcy after operational disruptions in FY26.
- The new daily wear concept is performing well, with 12-13 of the 15 operational stores already profitable and generating about INR1,000 of sales per square feet per month.
- Full price sales remained strong at 94%, with an average selling price of INR863, indicating healthy demand and pricing power.
- The company maintains a strong balance sheet with cash and cash equivalents of INR202 crores, and expects operating cash flow to fully finance all CapEx requirements.
- Larger stores (over 700 square feet) are outperforming smaller ones, with SSG in the range of 2.5% to 3%, validating the strategy to migrate to larger store formats.
- EBITDA before exceptional items saw a 2% degrowth to INR67.4 crores, largely due to incremental marketing investments, including the new brand ambassador partnership.
- An exceptional expense of INR6.5 crores was recorded for the write-off of capital expenditure related to store closures, a direct consequence of the network consolidation strategy.
- Fabric costs have increased by 7% to 10% due to the Middle East situation, which could potentially impact gross margins in the coming quarters.
- The company closed 66 stores during the quarter, reducing total retail space by 7,000 square feet, and the store transition process is expected to continue through FY27.
- Working capital days stood at 139 days with inventory days at 100 days, indicating room for further optimization to strengthen the balance sheet.
- Management cautioned that the positive SSG of 0.6% may not yet be a firm trend, as it could be influenced by a favorable base or the closure of smaller stores.
Ladies and Gentlemen, Good day and welcome to the Go Fashion India Limited Q1 FY27 Earnings Conference Call. (Operator Instructions)
I now hand the conference over to Mr. Gautam Saraoghi. CEO, Go Fashion India Limited.
Thank you and over to you sir.
Good evening and warm welcome to everyone present on the call. Along with me, I have Mr. R. Mohan, our Chief Financial Officer and SGA, our Investor Relations Advisors. +
I hope you have all received our investor tech by now. For those who have not, you can view them on the stock exchange and the company website.
On our last call, we laid five clear principles and priorities for FY '27. I want to spend a few minutes giving you a sense of where we stand on each of these one quarter in.
Priority one was turning SSG positive.
This was our single most important commitment for the year and I'm pleased to share that we have started FY27 on the right note. Same-store sales growth for our video
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