METRO BRANDS LIMITED

During the earnings conference call for the quarter ended June 30, 2026, management reported a 14% growth in standalone business and a 9% increase in EBITDA, resulting in a 13% PAT. They noted a recovery in sales in June after a soft April and May, attributed to external factors like the U.S.-Iran conflict and a shift in wedding dates. Management highlighted strong performance from Clarks and their e-commerce channels, with D2C and marketplace omni businesses growing by 60%. They opened 13 new stores and closed 4, resulting in a net addition of 9 stores. Gross margins remained high at nearly 60%, while EBITDA margins were stable at 30%. Management acknowledged challenges such as increased marketing investments and occupancy costs impacting PAT margins. They expressed confidence in achieving a 15% PAT for the full year and emphasized ongoing investments in talent and technology.

Management provided a balanced view of growth and challenges faced during the quarter.