- 20 Mar 2023
- ICICIdirect Research
Gokaldas Exports expects demand resurgence from H2FY24
GOKEX - 403 Change: 10.15 (2.58 %)News: In a media interaction, the management of Gokaldas Exports has said it expects the demand for apparel in the US market to remain muted in CY23 and likely rebound in 2024
Views: The US apparel brands currently have some excess inventory as they overbought in 2022 in anticipation of high growth but demand has not been as high from a volume perspective. Therefore, order flow from most US brands has been slower than usual in 2023. Gokaldas Exports has not seen a decline in demand or a setback as yet. Demand from Europe is expected to stay somewhat muted due to the Ukraine war but China may witness some traction of incremental buying with the country opening up after stringent pandemic restrictions. Orders for garment exporters could see a resurgence from the second half of FY24 with the reduction of existing inventory with global retailers and demand scenario stabilising across global markets
Impact: Neutral