- 30 Sep 2022
- ICICIdirect Research
Relaxo Footwear expects to gain market share in ensuing quartersRELAXO - 829 Change: -9.25 (-1.10 %)
As per media reports, post recent stabilisation of raw material prices, Relaxo Footwear expects to gain market share in the next three to four month.
Relaxo Footwear witnessed slower revenue growth and lower margins over the last two quarters as significant increase in raw material prices and an increase in GST to 12% for footwear under Rs 1,000 led to lower consumer demand for the category as customers shifted towards cheaper products. More than 85% of Relaxo’s portfolio is under the Rs 1,000 category. With easing of raw material price and price corrections initiated by the company, Relaxo would be able to gain market share in the price sensitive market. Also, the company is enhancing its focus on its sparx brand under which it sells shoes and sandals and expects it to grow the fastest among its product portfolio owing to increasing demand for sports and athleisure products in India.