Lovable's tie-up with Adidas gives its gains in the bourses

Shares of Lovable Lingerie surged 20 percent after the company announced that it has entered into a pact to make and market Adidas products in the Indian market. “The company has entered into a brand sublicensing agreement with ‘Global Merchandising’, an overseas company of Adidas Group and acquired license of its brand to manufacture, distribute and sell the products in the Indian market,” Lovable has said in a filing to the stock exchanges.

However, for the second quarter, the company reported a net profit of Rs 4.2 crore, down 4.5 percent, from Rs 4.4 crore, in the corresponding quarter last fiscal. Sales during the quarter increased to Rs 46 crores, up 9.5 percent, from Rs 42 crores, in year ago period.

Popular among women for its premium lingerie range, Lovable enjoys a market share of around 20 percent in India. The brand is growing at 25 percent a year and over the next three years, plans to push the growth rate up to 35 percent. In February, this year private equity arm, Nalanda Capital increased its stake in the company from the earlier 5.06 percent to 8.79 percent.