Go Fashion (India) (GOCOLORS) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 delivered strong results with revenue of INR 220 crore, up 16% YoY, and PAT of INR 29 crore, up 9% YoY, maintaining a 97% Full Price Sales ratio and leadership in branded women's bottom-wear.

• The company added 20 net stores, reaching 700–734 EBOs, and continues to expand with a target of 120–150 new stores for FY25, focusing on Tier 2–3 cities.

• Expansion into the Middle East via a FOFO model with Apparel Group is on track, with the first store expected this year and no capital investment required.

• Unaudited Q1 FY25 results were approved by the Board and reviewed by statutory auditors with an unmodified opinion.

• The company is leveraging technology and omni-channel engagement to drive growth.

Financial highlights

• Q1 FY25 revenue was INR 220 crore, up 16% YoY from INR 190 crore; gross profit grew 17% YoY to INR 136 crore, with a gross margin of 61.8%.

• EBITDA stood at INR 32 crore (margin 32.8%), and PAT was INR 29 crore, up 9% YoY, with a PAT margin of 13%.

• Basic and diluted EPS for Q1 FY25 were INR 5.30, up from INR 4.87 in Q1 FY24.

• Cash & cash equivalents stood at INR 220 crore as of June 2024.

• Pre-Ind AS 116 operating cash flow was INR 32 crore in June 2024.

Outlook and guidance

• Premium segment expected to lead growth as demand normalizes, with SSG target for FY25 at 4%-5% and June SSG at 5%-6%.

• EBITDA margin guidance for FY25 is 19%-20% pre-Ind AS 116; advertising spend to remain at 2% of revenue.

• Plans to expand by 120–130 EBOs annually, focusing on Tier 2 and Tier 3 cities and deepening presence in existing geographies.

• Targeting ~80% of revenues from EBOs in the coming years, with no external funding required for growth.

• Continued investments in technology and digital channels to enhance customer experience and drive online sales.