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

Executive summary

• Q1 FY25 delivered strong results with revenue from operations at INR 220 crore, up 16% YoY, and PAT at 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 stores across 164 cities, with a target of 120-150 new stores for FY25 and ongoing expansion into the Middle East via a FOFO model.

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

• Maintained an 8% market share in branded women's bottom wear with a diversified product portfolio.

Financial highlights

• Q1 FY25 revenue was INR 220 crore, up 16% YoY, with gross profit at INR 136 crore and a gross margin of 61.8%.

• EBITDA stood at INR 72.1 crore, up 12% YoY, with a margin of 32.8%.

• PAT was INR 29 crore, up 9% YoY, with a PAT margin of 13% and EPS at INR 5.30.

• Cash and cash equivalents as of June 2024 were INR 220 crore, invested in FDs and liquid funds.

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

Outlook and guidance

• Plans to expand by 120–150 EBOs in FY25, focusing on Tier 2 and Tier 3 cities, with no external funding required.

• SSG target for FY25 is 4%-5%, with 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.

• Branded women's bottom wear market expected to grow at 20.5% CAGR from 2020–2025.