Footwear retailer Metro Brands has identified 50 new locations where they believe the brand can thrive and it can broaden the customer base. This plan will also see the company adding 200 new stores in the next 2 years.

Metro Brands CEO, Nissan Joseph, recently spoke with CNBC-TV18 and expressed his optimism about the company's performance in the footwear retail sector. Despite facing a challenging first quarter in 2023, Metro Brands remains confident in its growth strategy.

According to Joseph, the demand for their products continues to be strong, which bodes well for the company's future. Even though they faced an 11.6 percent year-on-year fall in net profit, recording Rs 93.5 crore for the quarter ending June 30, 2023. The company posted Rs 105.8 crore net profit in the same period last year. However, Metro Brands is determined to bounce back stronger, said Joseph.

“We have seen growth in our eCommerce business which signifies that the demand continues to be strong,” he said.

One of the company's major goals is to expand its physical presence by opening 200 new stores within the next two years. Joseph revealed that they have already identified more than 50 new cities where they believe the brand can thrive and cater to a broader customer base.

“When we look at our new store growth, we had upped our guidance to open 200 stores in two years at the last call and we are very much on track with that. I feel very comfortable with that number,” he said.

With the expansion plans, the company understands the potential challenges of maintaining profitability while opening new stores. However, Joseph reaffirmed their commitment to achieving a 35 percent EBITDA margin despite the new store openings.

The positive news lies in the 14.7 percent increase in total revenue during the period under review, which amounted to Rs 582.5 crore. This uptick in revenue from Rs 508 crore in the corresponding period of the preceding fiscal year signifies the company's ability to generate significant sales even in challenging market conditions.

Metro Brands' management is now focused on staying ahead of the competition and adapt to evolving market trends. Despite the setback in net profit in the first quarter, they remain optimistic about the company's long-term prospects.

For more details, watch the accompanying video

(Edited by : C H Unnikrishnan)

First Published:Aug 2, 2023 1:58 PM IST