Weak same-store sales growth (SSSG), falling sales per square foot, shrinking profitability and investor aversion towards mid-cap stocks triggered a 34% drop in the stock price of V-Mart. The confluence of factors pushed the stock to a 52-week low of Rs. 1,698 in late August. The fashion store chain with a strong presence in Tier-II and Tier-III cities has been another victim of the slowdown in consumption.
With tepid macro conditions, the management has revised its SSSG guidance to 5-8% versus 7-8% earlier for FY20. At the same time, profitability