After announcing a partnership with well-known American hat company New Era Cap, shares of Metro Brands saw a spike of around 7% in intraday trading on Friday, August 9. This is the second straight session of gains for the market.
Metro Brands has extended its licensing arrangement with New Era Cap, a New York-based company that pioneered sports fashion headwear. This cooperation is expected to support Metro Brands’ athleisure market expansion and improve New Era’s retail presence in India, per an exchange filing.
“Under the agreement, Metro Brands Ltd (MBL) receives exclusive distribution and sales rights for New Era products, including headwear, apparel, and accessories, through retail stores and kiosks. MBL will also manage online sales via its websites, New Era’s sites, and online marketplaces. Additionally, New Era products will feature in upcoming Foot Locker stores in India,” the exchange filing stated.
During intraday trading, the stock increased by as much as 6.78 per cent, peaking at ₹1,430.10. In the last trading day, the stock has increased by over nine per cent.
Following today’s surge, the stock is presently less than 1% off its all-time high of ₹1,440.45, which was reached on November 30, 2023. Additionally, the stock has increased by 44% from its June 4, 2024, 52-week low of ₹992.65.
The stock has increased by almost 25% in the last year, and it has increased by 13% so far in 2024. Thus far, it has produced positive returns in six out of the eight months. It increased by 3.5 per cent in August, marking the fourth straight month of growth. The stock had previously increased by 10% in July, 8% in June, and 6% in May. But after increasing by 1% in March and 3.5 % in February, it had a correction of almost 6.5 % in April. The stock experienced a 13 per cent fall in January.
With more than 800 locations nationwide, Metro Brands Ltd. is getting ready to open India’s first Foot Locker location. Notable Indian brands like Metro Shoes and Mochi, along with well-known global names like Crocs, FitFlop, and Fila, are all part of the Metro Brands Ltd portfolio.
“The Indian headwear market has grown significantly through e-commerce. Recognizing the opportunity for retail expansion, Metro Brands plans to strategically penetrate the market by integrating sports culture into the cap industry with New Era,” the company added.
Celebrated for its iconic headwear styles like the 59FIFTY fitted cap, the 9FIFTY snapback, and the adjustable 9FORTY, New Era is well-known for producing official on-field caps for Major League Baseball and the National Football League. These styles appeal to a broad spectrum of sports fans and fashion enthusiasts.
Regarding the partnership, Nissan Joseph, CEO of Metro Brands Limited, stated, “At Metro Brands Ltd, our vision is to bring the finest global brands to India and meet our customers’ complete athleisure wardrobe needs. This partnership is a significant milestone in that journey. It will allow us to revolutionize the cap market, enhance the retail experience, and cater to the evolving preferences of our customers. We are confident that, through this collaboration, caps will become the next must-have accessory.”
In the meantime, the unaudited financial statements for the quarter ended June 30, 2024 (Q1FY25) will be reviewed and approved by the board of directors of Metro Brands during their meeting today, August 9, 2024.
