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Trent Shares Plunge 8%, Wiping Rs 13,000 Crore Amid Growth Concerns

Shares of Tata Group retailer Trent Limited plunged sharply, erasing nearly Rs 13,000 crore in market value despite the company reporting a 17% year-on-year rise in revenue. The sell-off was driven by investor concerns over weakening same-store sales and a decline in revenue per square foot, indicating falling store productivity. The company continues aggressive expansion, adding 48 net new Zudio stores and 17 Westside stores in the December quarter. The stock is now down over 41% in the past year, deepening losses for investors.

Key Points: Trent Stock Crashes 8% Despite Revenue Growth

  • Stock fell 8.3% to Rs 4,060.65
  • Rs 13,000 crore market cap wiped out
  • 17% YoY revenue growth to Rs 5,220 crore
  • Concerns over weak same-store sales & productivity
  • Aggressive store expansion continues
2 min read

Zudio operator Trent shares sink over 8 pc, Rs 13,000 crore market value eroded

Trent shares plummet over 8%, erasing Rs 13,000 crore in market value as investors worry over slowing same-store sales and falling productivity.

"investors focused more on signs of slowing growth rather than the headline revenue number - Analysts"

Mumbai, Jan 6

Shares of Tata Group retailer Trent Limited plunged sharply on Tuesday, rattling investors despite the company reporting double-digit revenue growth for the December quarter.

The stock fell as much as 8.3 per cent to Rs 4,060.65 on the BSE, wiping out nearly Rs 13,000 crore in market capitalisation.

The sharp sell-off came even as Trent posted a 17 per cent year-on-year (YoY) rise in standalone revenue to Rs 5,220 crore in the October-December quarter.

However, investors focused more on signs of slowing growth rather than the headline revenue number.

Analysts pointed to weakening same-store sales and a continued decline in revenue per square foot, which raised concerns about falling productivity at the retailer's stores.

Trent, which operates popular brands such as Zudio and Westside, has been expanding aggressively, but the latest performance suggested that the pace of growth may be losing momentum.

During the December quarter, the company added 48 net new Zudio stores and 17 net new Westside stores. This took the total number of Zudio outlets to 854 and Westside stores to 278.

By 1:15 p.m., Trent shares were trading at Rs 4,092.90, down Rs 336.90 or 7.61 per cent from the previous close.

The stock has been under pressure for some time now. Over the past five trading sessions, it has fallen 3.51 per cent, while over the last six months it has declined sharply by about 25.5 per cent.

On a year-to-date (YTD) basis, the stock is down 4.1 per cent.

The recent fall has deepened the longer-term pain for investors, with Trent shares now down over 41 per cent over the past one year.

The Mumbai-based retail company was founded in 1998 and operates fashion and lifestyle formats.

Apart from Westside and Zudio, the Tata Group company runs popular brand like Zara in joint venture.

- IANS

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Reader Comments

R
Rohit P
As a regular Zudio shopper, I'm not surprised. The quality has become very inconsistent lately. Last month I bought a shirt that faded after one wash! Maybe they're expanding too fast and compromising on quality control. The market is punishing them for it. Focus on existing customers, not just new stores! 😕
A
Aman W
‍♂️ 41% down in one year is brutal for retail investors. Many middle-class families invest in Tata stocks thinking they're safe. This shows even blue-chips can have bad phases. Hope the management addresses the productivity issue soon. The Indian retail story is still strong, but execution matters.
S
Sarah B
Interesting case study. Adding 65 net new stores in a quarter is massive expansion. But revenue per square foot declining? That's the key metric for retail health. It suggests the new stores aren't performing as well as the old ones did, or competition (like Reliance Trends, Max) is eating into their pie. Market is right to be worried.
K
Karthik V
Maybe it's a buying opportunity? The brand recall of Westside and Zudio is still very strong, especially in tier 2/3 cities. Once the expansion phase settles and they optimize operations, the stock could rebound. But definitely needs patience. Not for the faint-hearted.
N
Nisha Z
Respectfully, I think the market is overreacting. 17% revenue growth in this economy is not bad at all! Every retail chain goes through expansion pains. Tata has the financial muscle to see this through. This feels like a short-term correction. Long term, organized retail will grow in India.

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