Shares of Tata Group retailer Trent Limited experienced a significant drop on Tuesday, declining by 8.3% to Rs 4,060.65 on the BSE. This resulted in a market capitalization loss of nearly Rs 13,000 crore. Despite reporting a 17% year-on-year revenue increase to Rs 5,220 crore for the October–December quarter, investors were more concerned about signs of slowing growth.
Analysts highlighted issues such as weakening same-store sales and a continuous decrease in revenue per square foot, indicating a potential decline in store productivity. Trent, known for brands like Zudio and Westside, has been expanding rapidly, but the latest results suggest a possible slowdown in growth momentum. During the quarter, the company added 48 new Zudio stores and 17 new Westside stores, bringing the total to 854 Zudio outlets and 278 Westside stores.
As of 1:15 p.m., Trent shares were trading at Rs 4,092.90, marking a 7.61% decrease from the previous close. The stock has been facing pressure for a while now, with a 3.51% decline over the past five trading sessions and a significant 25.5% drop in the last six months. Year-to-date, the stock is down by 4.1%, adding to the long-term decline that has seen Trent shares plummet by over 41% in the past year. Established in 1998, the Mumbai-based retail company operates various fashion and lifestyle formats, including the popular brands Westside, Zudio, and Zara in a joint venture.
