Campus Activewear (CAMPUS) Q1 24/25 earnings summary

Executive summary

• Achieved 3% year-on-year volume growth in Q1 FY25, selling 5.8 million pairs, despite a 4.1% YoY revenue decline to INR 339.2 Cr due to extreme summer and fewer wedding dates.

• Maintained gross margins at 53.3% despite a 6.9% YoY drop in ASP to INR 585, driven by higher open footwear sales.

• Expanded product portfolio with 78 new designs and increased distribution reach, adding new LFS accounts, 13 new EBOs, and 8 new distributors.

• Strengthened pan-India presence, now reaching over 23,100 retailers and 275+ EBOs.

• Board approved unaudited Q1 FY25 results and reappointments of key executives for three years from December 2024.

Financial highlights

• Operational revenue for Q1 FY25 was INR 339.2 crores, down from INR 353.8 crores in Q1 FY24.

• EBITDA stood at INR 54 crores with a margin of 15.8%, impacted by higher employee costs but offset by lower finance costs.

• PAT for the quarter was INR 25.4 crores, with a PAT margin of 7.4%.

• Basic and diluted EPS for Q1 FY25 was ₹0.83, compared to ₹1.03 in Q1 FY24.

• Advertising & sales promotion spend increased 41.3% YoY to INR 25.5 Cr.

Outlook and guidance

• Expects normalization of ASP and per-counter sales as seasonal effects subside.

• No significant ASP increase anticipated for FY25; expects demand recovery from July onwards.

• Focus on product diversification, premiumization, and omni-channel experience, with plans to deepen presence in Western and Southern India and enhance focus on women and kids segments.

• Margin aspirations remain at 17-18% EBITDA in a normalized demand environment.

• Financial results reviewed and approved by the Board, with auditors expressing an unmodified opinion.