Share of Arvind Fashions was trading over 3% higher in Friday's opening session after the retailer announced that Flipkart will buy 27% stake in its subsidiary Arvind Youth Brands for Rs 260 crore. The recently formed subsidiary will own the Flying Machine brand.
Later, Arvind Fashions shares erased gains to trade 2.5% lower after the company posted its March quarter earnings that were weaker than street estimates. Arvind Fashions reported a consolidated net loss of Rs 208 crore for the quarter ended March 31, compared to a net profit of Rs 21.30 crore a year earlier, impacted by COVID-19 outbreak and subsequent disruptions in the market.
Following the report of Flipkart's stake purchase in a subsidiary, Arvind Fashions share price opened with a gain of 3.53% to an intraday high of Rs 175.8 against the last closing price of Rs 168.90.
Stock price of Arvind Fashions, later gave up gains over weak earnings in Q4 and dropped 2.5% to an intraday low of Rs 165.55 on BSE.
Share price of Arvind Fashions trades higher than 5 and 50-day but lower than 20, 100 and 200-day moving averages. Arvind Fashions shares have risen 2.09% in one week and 0.36% in one month.
Revenue from operations fell 39.22% to Rs 710.46 crore during the March quarter against Rs 1,168.96 crore in the corresponding quarter a year ago.
J Suresh, MD & CEO, of Arvind Fashions, said, "Completion of the key strategic steps during the year have lent fundamental strength to our business. While COVID has been an unprecedented event which has significantly impacted the entire retail industry, as a leading casual wear company with a portfolio of brands with leading market positions and key capabilities in digital and omnichannel, we expect to gain market share as a business get back to normal."
The retail company, that has 1,290 stores across India, as well as 10,000 multi-brands outlet presence, said in its regulatory filing that currently, 75% of its stores are operational.