Shares of this footwear stock under the ‘mid-cap’ category jumped around 6 percent in Thursday’s trading session after the company intimated regarding an agreement with a US-based firm to open and operate athletic apparel stores in India.
With a market capitalization of Rs 38,056.95 crores, the stocks of Metro Brands Limited started their trading session on Thursday at Rs 1,371.50 and currently trades at Rs 1,400.25, gaining approximately 6 percent as compared to the previous closing levels of Rs 1,325.65 apiece.
In the past year, the company’s stock has witnessed a consistent increase in prices delivering decent returns of around 70 percent to its stakeholders.
Such bullish behaviour in today’s stock prices was observed after the company, via a regulatory filing with the Bombay Stock Exchange (BSE), intimated that it has signed a Trademark License Agreement with “Foot Locker Retail, Inc.”, an American sportswear and footwear retailer headquartered in New York.
The agreement grants exclusive rights to Metro Brands for opening and operating athletic as well as casual footwear/apparel stores under the brand names “FOOT LOCKER®” and “KIDS FOOT LOCKER®” through brick-and-mortar stores in India.
Having a glance at the recent information, the company has a sum of 795 stores spread across 189 cities in India. Focusing on the e-commerce revenue, the company posted an increase of 53 percent YoY.
During the recent financial quarters, the company has reported a dip in the prime indicators of business such as the operating revenues as well as net profits. The former moved down from Rs 582.52 crores during Q1FY23-24 to Rs 555.7 crores during Q2FY23-24, and, the latter, during the same period, shifted down from Rs 92.89 crores to Rs 67.11 crores.
According to the shareholding pattern data for the quarter ended September 2023, the company’s Promoters hold a 74.2 percent stake, and the Foreign Institutional Investors (FIIs) hold a 2.33 percent stake in the company.
Metro Brands Limited is a footwear retailer offering a wide range of branded products for every occasion including formal as well as casual events. The company’s operating segments include trading in fashion footwear, bags, and other accessories in the economy and premium categories.
Written by Amit Madnani
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