Top retailers see better sales in Q2, but not full recovery

Avenue Supermarts (DMart) reported 11% YoY drop in Q2FY21 revenue.

Lockdown restrictions throughout the quarter impacted the business with footfalls dropping 58% YoY. However, signs of QoQ recovery bode well for future. The company's revenue increased to Rs 175 crore in Q2FY 21 from Rs 78 crore in Q1FY21.  

Trent's Q2FY21 standalone revenue contracted 45% YoY. Gross margin also came under pressure due to discounting and lower sale of high-margin items.

Jubilant Foodworks (JFL) reported an above-estimate quarter driven by strong 350bps YoY improvement in gross margin thanks to favourable raw material prices, lower discounting and delivery fee, and optimisation on other costs. Business was back to 82% of last year in Q2FY21 with October already at 96%.

Shoppers Stop's Q2FY21 revenue was down 65% YoY. However, online sales grew 50% YoY. Net profit of the company improved in Q2FY21 as compared to Q1FY21.

Titan Company (Titan) recovered strongly in Q2FY21, especially in the jewellery segment with sales at 98% of last year.  Titan's management is confident of 90-100% recovery in Q3FY21 and 100%-plus in Q4FY21.

Aditya Birla Fashion & Retail (ABFRL)'s revenue was down 56% YoY. However, cost-saving initiatives helped it break even on EBITDA.