1. Opening Hook
MUFTI decided to upgrade its wardrobe first and worry about sales later. While other apparel brands flaunt double-digit growth, Credo Brands chose the harder path—premiumisation, store closures, higher rents, and patience sermons. The result? Flat revenues, confused investors, and a management team calmly explaining why nothing is broken, just “under transformation.”
Footfalls are muted, Bangladesh shipments took scenic routes, Diwali arrived early, and consumers apparently didn’t read the MUFTI 2.0 memo yet. Still, management sounds unfazed, promising that perception change takes time and shareholders should develop monk-level patience. Profits are intact (mostly), margins are healthy, and optimism is generously sprinkled everywhere.
Stick around—because this call had flattish guidance, premium excuses, and analysts slowly realising this is a long-haul waiting game.
2. At a Glance
- Revenue down ~8% YoY (H1) – Transformation doesn’t bill customers immediately.
- Gross Margin up 200 bps to ~59% – Premium clothes, premium pricing discipline.
- EBITDA margin ~28% – Still flex-worthy in apparel land.
- PAT down sharply – Profits slimmed, brand got fitter.
- Working capital at 217 days – Franchisees taking their sweet time.
- Marketing spend rising to 6–7% – Growth outsourced to advertising agencies.
3. Management’s Key Commentary
“This year, we advanced our MUFTI 2.0 transformation journey.”
(Translation: Sales paused, branding resumed 😏)
“Sales through our website have more than doubled.”
(Low base magic, but we’ll take it)
“Revenue decline was due to Bangladesh supply chain disruptions.”
(Logistics took the long route)
“We proactively refreshed inventory before the festive season.”
(Revenue shifted, spreadsheets suffered)
“Working capital increase is business as usual.”
(217 days, but don’t panic)
“This year will be flattish, next year also unclear.”
(Visibility: foggy)
