Monte Carlo Q1 net sales down 5.9 percent

Monte Carlo Fashions (MCFL), the popular apparels brand has seen a decline in sales by 5.9 percent year on year for the first quarter ended June 30, 2015. Reason: adjustments for stock correction and unsold inventory returned primarily from the woollen segment from large format stores.

The company also said that as a prudent accounting policy, the auditors have considered the value of inventory returned till the cut-off date of the partial audit in the month of July or end of quarter whichever is higher. “Last year it was considered as of end of the quarter and due to the new accounting policy revenue has been impacted to the tune of Rs. 53.3 million in the quarter under review,” it said, adding EBIDTA has been impacted due to increase in advertising & marketing expenses which is part of the company's strategy for pan-India brand visibility as well as penetration in the South India.

MCFL opened six exclusive retail outlets primarily in the south India during the quarter taking the total EBO count as on June 30, 2015 to 220. The share of sales from south India increased to almost 5.1 percent of the overall revenue during the reporting quarter.