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; unaudited results were approved with no material misstatements.

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

• Same-store sales growth (SSSG) was flat, reflecting subdued consumer sentiment and inflation-driven postponement of discretionary purchases.

• The company maintained a high full-price sales ratio of 95.1%, indicating strong brand loyalty and limited reliance on discounting.

• Go Fashion (India) Limited is a leading direct-to-consumer women's bottom-wear brand with ~8% market share, offering 50+ styles in 120+ colors and a pan-India presence through 775 EBOs and 2,299 LFSs.

Financial highlights

• Q3 FY25 revenue from operations was INR 214.7 crores, gross profit INR 138 crores (up 11% YOY), EBITDA INR 70 crores (up 3% YOY), and PAT INR 24 crores (up 4% YOY), with a PAT margin of 11.3%.

• For nine months, revenue was INR 643 crores (up 11% YOY), gross profit INR 405 crores (up 14% YOY), EBITDA INR 206 crores (up 9% YOY), and PAT INR 74 crores (up 6% YOY).

• Gross margin improved to 64.1% in Q3 FY25 and 63.0% in 9M FY25; EBITDA margin at 32.5% in Q3 and 31.9% in 9M.

• 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.

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

• Aims to maintain inventory days between 90-95 and convert over 50% of EBITDA into operating cash flows.

• Expects Pre-Ind AS EBITDA margin to stabilize between 18-20% with even low single-digit SSSG.