India fashion retailer Trent tumbles 11% as revenue growth disappoints

Shares of one of India’s biggest fashion retailers, Trent, plunged over 11% on Tuesday after the company’s first-quarter revenue growth missed earnings targets.

The Tata Group company reported standalone revenue of 56.66 billion rupees ($595 million) for the quarter ended June, up 19% on year, Trent said on Monday.

Citigroup remains “cautious on Trent” owing to a weak trend in revenue per square foot, increasing competition, the impact of cannibalization, and new-store expansion in smaller cities. The firm was expecting the company to report revenue growth of 23%, it said in a report Monday.

Trent operates fast fashion stores primarily in India under the brands Westside and Zudio. At the end of June, Trent had a portfolio of 1,312 stores, the company said.

Shares of the company are up 4.3% since the start of this year, even as India’s benchmark index Sensex is down nearly 8%.