Third wave to trim fashion retailers' revenues

Renewed restrictions on operating hours of malls, non-essential stores and curtailment of mobility amid the third Covid wave is expected to shave-off 8 per cent of fashion retailer's revenues in FY22. According to ratings agency ICRA, these retailers are expected to reclaim upto 70-72 per cent of their pre-pandemic revenues in FY2022 as against 78-80 per cent expected earlier. 

This is based on estimated 20 per cent decline in store-operating hours during the fourth quarter vis-A-vis rating agency's earlier expectation, leading to a commensurate decline in Q4 revenues," ICRA said. Besides, the agency said that restrictions are expected to be limited to Q4FY22 and estimated to be around six to eight weeks.  Strong rebound in sales is, however, expected upon lifting of restrictions, akin to that witnessed post the second wave, it said.