Relaxo Footwear: overall demand suffers, open slippers demand improves

Relaxo Footwear, a widely celebrated Indian footwear brand, has shared information with the market about the consequences of the COVID-19 pandemic on the company's business.

Its sales transactions had completely stopped towards the end of March and for the whole month of April. The overall demand has suffered due to the imposed nationwide lockdown.

Yet, since the Government has started easing out the lockdown, the demand for open slippers has been improving. Earlier, the company had opened two of its plants and now, in line with the latest guidelines, the company has four functional plants.

Commenting on its supply chain, the company said that it has not faced any inbound supply chain issues; however, the outbound supply chain has been slightly affected.

Moving forward, the footwear industry plans to focus more on non-leather footwear products as 86 per cent of the footwear consumed worldwide comprises non-leather. This could be beneficial to Relaxo Footwear as it is majorly engaged in non-leather products such as rubber/EVA/PU slippers, canvas/sports/school shoes, sandals, etc. It has a ten-brand portfolio including major brands like Relaxo, Sparx, Flite and Bahamas. The company's geographical mix stands at Domestic (96 per cent) and Exports (four per cent).

Today, the stock of Relaxo Footwears witnessed gap-up opening by two per cent at Rs 674. However, it could not sustain for long and declined nearly four per cent, making an intraday low of Rs 637 on the BSE.