Mumbai | January 6,2025 | SKY LINK TIMES
Trent Shares Crash Over 8%:
Shares of Tata Group-backed retailer Trent Limited the operator of popular fashion brands Zudio and Westside, plunged sharply on Tuesday, wiping out nearly ₹13,000 crore in investor wealth, despite the company reporting double-digit revenue growth for the December quarter.
The stock fell as much as 8.3 per cent to an intraday low of ₹4,060.65 on the BSE, making it one of the worst-performing large-cap retail stocks of the day. By 1:15 pm, Trent shares were trading at ₹4,092.90, down 7.61 per cent from the previous close.
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Revenue Growth Fails to Calm Investor Nerves
Trent reported a 17 per cent year-on-year (YoY) increase in standalone revenue, reaching ₹5,220 crore for the October–December quarter. However, the strong topline performance failed to reassure investors, who instead focused on emerging signs of slowing operational momentum.
Market participants expressed concern over weakening same-store sales growth and a continued decline in revenue per square foot, indicators that point to falling productivity across the retailer’s expanding store network.
Concerns Over Store Productivity and Expansion Pace
Analysts noted that while Trent continues to expand aggressively, the benefits of scale may be tapering off. During the December quarter, the company added:
• 48 net new Zudio stores
• 17 net new Westside stores
This expansion brought Trent’s total store count to 854 Zudio outlets and 278 Westside stores across India.
Despite this rapid rollout, investors appear increasingly wary that store additions are outpacing demand, raising questions about sustainable growth and profitability in the near to medium term.
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Stock Under Pressure Across Timeframes
Tuesday’s sharp fall adds to the stock’s prolonged weakness:
1.Down 3.51% over the last five trading sessions
2.Down 25.5% over the past six months
3.Down 4.1% on a year-to-date (YTD) basis
4.Down over 41% compared to a year ago
The sustained decline reflects growing market caution around valuations and execution risks in India’s highly competitive retail sector.
About Trent Limited
Founded in 1998, Mumbai-based Trent Limited is a leading fashion and lifestyle retailer under the Tata Group umbrella. In addition to Westside and Zudio, the company operates Zara in India through a joint venture, positioning itself across both value and premium fashion segments.
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