Go Fashion (India) (GOCOLORS) Q3 24/25 earnings summary

Executive summary

• Revenue for Q3 FY25 grew 6% year-over-year to INR 250 crores, with nine-month revenue up 11% to INR 643 crores.

• EBITDA margin remained strong at 32.5% for Q3 and 32% for the nine months, despite a challenging demand environment.

• Same-store sales growth (SSSG) was flat, reflecting subdued consumer demand and inflationary pressures.

• Strategic cost control and disciplined discounting supported profitability, with 95.1% of sales at full price.

• Go Fashion (India) Limited is a leading direct-to-consumer women's bottom-wear brand with ~8% market share in branded WBW in India, operating 775 EBOs and 2,299 LFSs.

Financial highlights

• Q3 FY25 gross profit rose 11% year-over-year to INR 138 crores, with a gross margin of 64.1%.

• Q3 EBITDA was INR 70 crores (up 3% YOY), and PAT was INR 24 crores (up 4% YOY), with a PAT margin of 11.3%.

• Nine-month EBITDA reached INR 206 crores (up 9% YOY), and PAT was INR 74 crores (up 6% YOY), with a PAT margin of 11.4%.

• Cash and cash equivalents stood at INR 231 crores as of December 31, 2024.

• Basic and diluted EPS for Q3 FY25 were ₹4.50, up from ₹4.33 in Q3 FY24.

Outlook and guidance

• Targeting low single-digit SSSG in Q4 FY25 and mid-single-digit SSSG for FY26.

• Plans to open 80-90 net new stores in FY25 and 120-150 in FY26, focusing on horizontal expansion into new cities and Tier 2/3 markets.

• Expecting inventory days to stabilize between 90-95 days, supporting healthy working capital and cash flows.

• Pre-Ind AS EBITDA margin guidance of 18-20% for FY26, even with low single-digit SSSG.

• No external funding required for growth; expansion to be funded through internal accruals.