Fri Feb 07 11:46:48 UTC 2025: ## Trent Reports Lower-Than-Expected Profits Despite Revenue Growth; Stock Plunges

**MUMBAI, INDIA** – Tata Group’s fashion retail arm, Trent, reported a consolidated net profit of Rs 496.54 crore for the December quarter, falling short of analyst expectations and sending its stock price plummeting. While the profit represented a 34% increase year-on-year, it missed Bloomberg consensus estimates of Rs 507 crore. Revenue also lagged behind predictions, reaching Rs 4,656.56 crore compared to the projected Rs 4,760 crore, although this still marked a 34.32% rise compared to the same period last year.

The company attributed the shortfall to a 32% increase in total expenses, driven by the rapid expansion of its Westside and Zudio store networks. Trent opened 14 Westside and 62 Zudio stores during the quarter, bringing its total store count to over 900 across various brands.

Despite consistent gross margins for Westside and Zudio, Trent’s share price fell sharply following the announcement of a planned store portfolio optimization strategy, involving upgrades and consolidation of smaller stores. Chairman Noel N Tata stated the company remains focused on expansion and improving store quality.

While the company highlighted strong performance in its grocery business, Star, with a 25% revenue growth and double-digit like-for-like growth, the overall results and the planned store optimization fueled investor concerns, leading to an 8% drop in the stock price on Thursday. The stock, which more than doubled in the past two years, is now down 30% from its peak. The news of Trent’s financial results overshadowed unrelated news about Google’s upcoming Pixel 9a phone launch.

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