Value fashion, jewellery and premium footwear were the retail industry’s top performers in the first quarter of FY25, Nuvama Institutional Equities said in its latest sectoral update.

What Happened: The brokerage has a positive outlook for the retail industry banking on the back of a promising festive season and a bustling wedding season going ahead. Nuvama also expects rise in new store openings and online sales to pick up pace in the coming quarters.

Trent, V-Mart and Titan were its top picks in the sector, the brokerage said in its note.

Apparel sales faced challenges this quarter due to the extreme heatwave, fewer weddings and subdued consumer sentiment, the brokerage said. Trent’s performance excelled in the category, while value retailers like V-Mart saw their first double-digit same-store sales growth in four quarters. Nuvama remains optimistic on the sector over the upcoming festive and wedding seasons.

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Jewellery sales also took a hit due to fewer weddings, while increasing gold prices worsened the segement’s slump. However, the reduction of duty on gold from 15% to 6%, which has reduced the incidence of taxation from 18.5% to 9.3%, is likely to boost sales, Nuvama added.

In July, jewellery companies soared after Finance Minister Nirmala Sitharaman proposed cutting basic customs duty on gold and silver to 6%.

The sector faced a one-time inventory loss due to reduced duties but see this as a positive move to curb smuggled gold entering the country. They also saw increased demand due to a sudden drop in prices.

Price Action: Trent was down 1.52% to ₹6,820, Titan lost 1.89% to trade at ₹3,561.60 and V-Mart rose 0.26% to ₹3,561.60 on Tuesday.

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