Campus Activewear’s Q1FY25 Net Profit Declines by 19%

Campus Activewear, India’s leading sports and athleisure footwear brand, released its Q1 FY25 results, revealing a challenging quarter. The company’s financial performance was notably impacted by a subdued market environment.

Subdued Earnings Amid Market Challenges

Campus Activewear reported a revenue of Rs. 339.2 crore for Q1 FY25, marking a 4.1% year-over-year decline. The company’s Profit After Tax (PAT) also dropped significantly by 19.4% to Rs. 25.4 crore, compared to Rs. 31.5 crore in Q1 FY24. This downturn was further reflected in the EBITDA(Earnings Before Interest, Tax, Depreciation, and Amortisation) which fell by 18.7% to Rs. 54 crore. The decline in sales was attributed to a weaker demand environment, particularly in rural and semi-urban areas.

Operational Highlights and Strategic Moves

Despite the overall downturn, Campus Activewear continued to focus on expanding its footprint, adding 13 new stores during the quarter. However, the company faced a reduction in its average selling price (ASP), which dropped from Rs. 629 in Q1 FY24 to Rs. 585 in Q1 FY25, reflecting a shift in consumer preference toward more affordable, open footwear. CEO Nikhil Agarwal emphasized the company’s commitment to enhancing customer experience and expanding its geographical reach, signaling a strategic focus on long-term growth despite the immediate challenges.

Conclusion: The Q1 FY25 results for Campus Activewear underscore the challenges faced due to the broader economic environment. However, the company’s proactive steps in expanding its retail presence and adapting to market conditions suggest a strategy aimed at mitigating short-term setbacks and positioning itself for future growth. The stock of Campus Activewear Limited currently trades at Rs.286.80 a piece down by 1.66% from its previous day’s closing price. The stock has a 52-week high and a 52-week low of Rs.323.50 and Rs.213.00 respectively. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.