The Tata Group retailer posted 19% year-on-year first-quarter revenue growth, below Citi's 23% expectation, adding to concerns over store productivity, competition and expansion risks.
Shares of India's Trent fell more than 11% on Tuesday after the Tata Group retailer reported first-quarter standalone revenue that missed some market expectations. The company posted revenue of 56.66 billion rupees ($595 million) for the quarter ended June, up 19% from a year earlier, while Citi said it had expected 23% growth and remained cautious on the stock. The brokerage cited weak revenue per square foot, rising competition, cannibalization and expansion into smaller cities as key concerns. Trent, which runs Westside and Zudio stores mainly in India, had 1,312 stores at the end of June. Despite the selloff, the shares are still up 4.3% so far this year, compared with a nearly 8% drop in the Sensex.