Monte Carlo Fashions (MCFL), a retailer of branded apparels reported that its sales declined 5.9 per cent year over year for the first quarter ended June 30, 2015. Its revenue fell 5.9 per cent from a fiscal ago period to Rs 68.8 crore during the same month of time.
Revenue has been impacted, as it includes adjustments for stock correction and unsold inventory returned primarily from the woolen segment and large format stores.
The company also added that as a prudent accounting policy, the auditors have considered the value of inventory returned till the cut-off date of the partial audit in the month of July or end of quarter whichever is higher.
“Last year it was considered as of end of the quarter and due to the new accounting policy revenue has been impacted to the tune of Rs. 53.3 million in the quarter under review,” it said.
MCFL also said EBIDTA has been impacted due to increase in advertising & marketing expenses which is part of the company’s strategy for pan-India brand visibility as well as penetration in the South India.
“This would help the company in the long run and also the advertisement expenses are expected to rationalise over the course of the year,” MCFL added.
In terms of its business operations, the company has added six exclusive retail outlets which are primarily in the Southern part of the country, due to which EBOs numbers as on June 30, 2015 has reached 220.
MCFL also informed that it has been receiving good response from the customers as the share of South India has increased to almost 5.1 per cent of the overall revenue during the reporting quarter.
Monte Carlo is a manufacturer and retailer of woolen products, including sweaters and cardigans, and cotton knitted garments such as t-shirts, track suits, ties, innerwear, thermal wear, etc.
