Focus on casual footwear to take Bata revenues beyond pre-Covid levelBATAINDIA - 1734 Change: -20.75 (-1.18 %)
News: As per media reports, the management indicated that Omicron variant had a minimal impact on the business operations and recovery is expected to be swift. The company expects Q4FY22 to be better than pre-Covid levels. The recent strategy of enhanced focus on casual footwear (sneakers) is bearing fruits with the segment contributing ~20% to overall revenues. The management expects ratio to improve further to 30% in FY23E and 50% in the next few years.
Views:Bata continues to penetrate into newer towns through franchise operated stores (targeting 500 franchise stores in the next three years). Also, aligning with the current demand scenario, it has enhanced its casual footwear portfolio and renewed sneakers category. With gradual opening of economy, we expect premiumisation story to resume resulting in healthy margins and revenue recovery