Apparel discount retailer Koutons Retail India Ltd sees revenue tripling to Rs 1,250 crore in 2008-09, helped by expansion, better product mix and efficiencies.
Looking to enter Middle East by NovemberNEW DELHI: Apparel discount retailer Koutons Retail India Ltd sees revenue tripling to Rs 1,250 crore in 2008-09, helped by expansion, better product mix and efficiencies, its chairman said on Friday.
Koutons is looking to add more than 2,000 stores by 2011, as it expands its traditional menswear sales and its newly launched women’s and children’s lines, D P S Kohli said in an interview.
“We will have 100% revenue growth this year (FY08), and 8% growth in profit after tax,” Kohli said.
For the year ended March 2007, Koutons earned net profit of Rs 34.5 crore on revenue of Rs 402 crore, the company had said in September 2007, a month before it went public.
Operating margins are set to rise by 100 basis points to 18% of revenue by 2009, he said, adding he expected them to be between 17.25% and 17.50% this year. “Because of economies of scale, we are able to reduce costs from the back-end, which is taking care of my up-going costs,” he said, referring to increased costs from rising rentals.
Koutons Retail operates in two lines: Charlie Outlaw, which caters to teenagers and young adult men, and Koutons, which is aimed at upwardly mobile male professionals.
Last year, it began selling women’s and children’s apparel in some of its 1,175 stores.
By 2011, the firm will have 1,000 Koutons stores and 2,000 Charlie Outlaw stores. It will start 100 stores each exclusively for women and for children and 120 large-format stores.
“The large-format stores will cater to the needs for the complete family,” Kohli said, adding the stores would be of between 5,000 to 6,000 square feet each. It is also looking to enter the Middle East by November.
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