Lifestyle reports steep decline in revenues | Mint – Mint
- Lifestyle reported a net loss of ₹243 crore during fiscal 2021, which widened 166% on year. Total expenses stood at Rs6,257 crore
NEW DELHI: Life Style International Private Ltd, that runs the retail chain Lifestyle in India, has reported a sharp 37% decline in its revenues for financial year 2020-21, shows data accessed from business intelligence platform Tofler. It closed the year at Rs5,882 crore. Its FY19 revenue stood at Rs9,306 crore.
Lifestyle sells fashion and accessories for men, women and children in addition to footwear and beauty products.
The company reported a net loss of Rs243 crore during the fiscal, which widened 166% on year. Total expenses stood at Rs6,257 crore.
Lifestyle International opened its first Lifestyle store in India more than two decades ago in 1999 and currently has close to 80 stores in the country. It is a part of the Dubai-based retail and hospitality conglomerate Landmark Group which was founded in 1973 with a store in Bahrain. Today, it has a significant presence in the Middle East and India.
The stores sell apparel, footwear, beauty and accessories. If offers a range of owned brands as well as franchise brands at its stores. The retailer competes in the India market with retail brands such as Shoppers Stop, Reliance Retail as well as Future Retail.
According to a Boston Consulting Group report released in March, India’s apparel market was down 27% to Rs3,022 billion in 2020 from Rs4,129 billion in 2019. It said it expects the apparel market to touch ₹5,781 billion by 2024. Multiple lockdowns due to the covid 19 pandemic and subsequent restrictions on movement were expected to delay the growth of the country’s retail market by a couple of years, it added.
Estimates by ratings firm Crisil suggested that the second wave of Covid-19 infections was set to pull down revenue growth of the organised apparel retail sector to 15-20% this fiscal from its earlier expectation of 30-35%.
Bimal Sharma, head of retail at CBRE, a multinational commercial real estate services firm, said all department store brands remained shut for long period between last year and this year.
“Even when they were allowed to be open, there were several restrictions that kept coming in the way of regular sales. Department stores – especially the ones housed in malls — like Lifestyle had heavy expenses and were not able to sell enough to meet their expenses in the last 18 months. What remains to be seen is what such brands will do going forward to avoid a similar situation,” he said.
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