You would like to read
- Actor & Entrepreneur Mithun Purandare launches fashion brand "ALIAUM"
- Shailesh Haribhakti joins the Advisory Board of Updapt (a SaaS-based ESG Tech Co.)
- CSS Corp employee headcount crosses 10,000 on strong growth momentum
- Xoriant continues its Great Place to Work Momentum in 2021
- New Construction Tech & Env Measures reduces pollution at New Parliament Building Site
Mumbai (Maharashtra) [India], February 14 (ANI/BusinessWire India): India's leading omni-channel direct-to-consumer jewellery brand, CaratLane, recorded its best ever quarterly revenue of Rs 447 cr. on the back of a strong growth momentum witnessed in the festive season. CaratLane also recorded their highest EBIT margin of 8 per cent is in quarter.
The two-year revenue CAGR stood at 47 per cent. The revenue growth is driven by improvement in marketing efficiencies, leveraging of the omni-channel sales network and strong product launches.
Improvement in consumer sentiment, removal of Covid lockdown measures, and a higher intent by consumers to spend on the back of robust savings due to lack of options in other categories like travel and food, were few of the external tailwind factors.
The Company continued to draw customers in, during the biggest season of the year, with the focus on new collection launches and new category additions. The two hero collections, Ombre 2.0, and Bloom, were launched keeping in mind the festive requirement of customers. New introductions in the affordable occasion-wear segment and the onset of the wedding season also saw an increase in the average order value. CaratLane's digital platforms have been a key driver, enabling the customers to discover great products online and then helping the customer navigate to the best channel of purchase for themselves (online, CL Live, Try at Home, or stores).
The Tier 2 cities are quickly becoming a strong market for CaratLane. Right from increased browsing to higher intent users and conversions, these markets have become a focus for the brand. Existing customers also keep coming back to CaratLane in these towns due to lack of other options when it comes to everyday jewellery.
Two key customer segments for CaratLane are self -buyers and gifting buyers. While both these segments saw a strong growth during the quarter, the festive and wedding season played a big role in driving higher number of customers to go for gifting. Gifting is also an important reason for existing customers to buy more frequently.
During the quarter, CL Live exhibited a strong 85 per cent growth while the TAH channel delivered a growth of 35 per cent. The Company added 6 new stores during the quarter with a net addition of 7,851 sq. ft. as part of the overall strategy of capitalizing on the large opportunity in small format stores in underpenetrated and underserved markets across India in large and small towns. The existing stores continued to witness strong traction with 56 per cent like-to-like growth for the quarter. The retail network as of Dec'21 is now spread across 129 stores spanning 47 cities with a total area of 120,212 sq. ft.
CaratLane's new US website went live in Q3. With a new warehouse, delivery timelines have reduced to 3 days for US customers.
Mithun Sacheti, Founder and Managing Director of CaratLane commented, "Strong brand strength, superior product mix, low customer acquisition cost and efficient operations, along with operating leverage has led to an EBIT margin of 7.5 per cent in Q3'22. So far we have served over half a million customers across the country. It is a matter of pride for us that over the last 12 years, we have painstakingly built this profitably growing brand, a rarity amongst all B2C start-ups."
On outlook for Q4 FY22, Mithun added, "Despite the impact of Wave 3 of Covid, we have a reasonably positive outlook for Q4 FY22. The various levels of lockdown restrictions across different cities have impacted us in January, particularly at our stores, and more so in what would otherwise be busy weekends for us. However, with reduction in restrictions across the country we ended January on good note and with the coming up of 2 key sales periods in the quarter Valentine's Day in February, and Women's Day in March, our expectation continues to be optimistic."
* Standalone financials of CaratLane Trading Private Limited
This story is provided by BusinessWire India. ANI will not be responsible in any way for the content of this article. (ANI/BusinessWire India)
DISCLAIMER
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
