shares of underwear companies
There has been a decline in the shares of major underwear companies in the country. Shares of Lux Industries and Jockey distributor Page Industries have weakened. Why have their shares decreased in the winter season? Have underwear sales been affected? Which has affected the shares. Let us understand it in details.
According to Moneycontrol report, company officials said that people especially in the low income group are short of money. Due to this, the sales of men’s underwear in the mass and mid-premium segments have been affected and the revenue has decreased in the second quarter. Both Lux Industries and Jockey’s distributor Page Industries have said that sales growth will slow down due to weak performance in the category. Due to low sales, the market sentiment has also changed regarding these companies.
Although food and retail inflation have declined from the high levels of 2024, persistent core inflation and low wage growth have reduced the spending power of most households. Generally, sales of men’s underwear are considered an indicator of a country’s economic condition, as delaying the replacement of an essential item like underwear reflects people’s financial caution.
There is pressure to reduce expenses
Karthik Yatindra, CEO of Page Industries, said that there is pressure to spend, which is especially visible at the entry level or the bottom of the pyramid. The effect of this may be that the pace of adding new customers from the lower class may be slower than we expected. So we are trying to increase it through our marketing efforts.
By Q2FY26, the Jockey brand’s share in men’s innerwear came down to 17.518 percent, which was 19-20 percent a year ago. The company, the exclusive distributor of Jockey and Speedo brands in India, is taking several initiatives to increase its reach to lower income group customers. In Q2, Page Industries reported slow revenue growth of 4 percent year-on-year, while volume growth increased by 2.5 percent to 56.6 million units.
Rates have not increased yet sales are low
Page Industries recorded revenue growth of 9 percent in FY25, which is less than the double digit growth seen in the post-pandemic years. Yatindra said that we have not changed the prices of our products for about 3.5 years. That means, despite so much inflation, our products are still as cheap as a few years ago. In terms of access, we are where we were 23 years ago. This clearly indicates that people’s pockets are tight.
The company’s rival Lux Industries has also shown a similar revenue growth pattern. The company, which owns Lux Cozi and Lyra brands, had given double digit growth in the last eight years, but in the last three years it has come down to just 4 percent CAGR. According to Traxon data, this shows a big decline in their topline.
In Q2, the company’s mass and value segment revenue fell by 9.8 percent to Rs 81.6 crore. This segment mainly sells men’s underpants and innerwear like briefs, trunks and vests which come under the Lux Classic and Lux GenX brands. In its investor presentation, the company has talked about weak demand amid inflationary pressure.
Fall in shares of companies
This year the shares of innerwear companies have declined. Lux shares have fallen 45 percent and Page 21 percent, while the Nifty 50 has gained 9.3 percent so far this year. This shows a huge difference between the performance of the sector and the overall market. Advent-backed Modenic also reported near-stable revenue growth at Rs 1,223.8 crore in FY25, according to Traxon data. Its highest revenue in FY22 was Rs 1,309 crore.
Although the recovery of innerwear companies was weaker than expected in 1HFY26, analysts are confident that volume growth will improve in 2HFY26 due to the festive season, wedding demand and increased consumption. Even though this sector did not directly benefit from the GST cut, it is expected that increased disposable income may increase the frequency of purchases in the second half of FY26. While there is a clear decline in the sales of men’s underpants, companies have seen a good trend in the women’s innerwear segment, although its share in the total business is still small.
women’s innerwear market
Lux Industries said in its FY25 annual report that over the last decade, we have increased our presence in the women’s clothing segment, where purchases are more frequent. This year, the company also launched a new brand named Pynk in the women’s segment, so that it can expand its portfolio beyond just being a men’s clothing company.
India’s women’s innerwear market was worth $4.4 billion in FY20 and is expected to reach $8.5 billion by FY25, i.e. an annual growth of 14 percent. In comparison, the men’s innerwear market was valued at $1.9 billion in FY20 and is expected to reach $3.1 billion by FY25, with an estimated annual growth of 10.3 percent, according to Lux’s annual report. Yatindra said that in the case of women’s innerwear, we have made a lot of progress both at the business and reach levels.
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