Brand Concepts Forges Ahead Growth Margins Stores

Ashwin Thakker

— 1 min read

Key Facts

  • Projected Sales Growth: Over 20% annualised from FY26.
  • Target EBITDA Margin: 10% by Q3 FY26 exit margin.
  • Manufacturing: Full hard luggage production commenced July 2025; targeting optimal capacity.
  • Retail Expansion: Plan to open 15-20 new stores in FY26, reaching 60-65 total; focus on larger, Company-Owned, Company-Operated (COCO) outlets.
  • Strategic Pricing: Adapted to “new normal” market pricing from June 2025.

Brand Concepts Limited, a prominent player in lifestyle accessories, revealed robust forward-looking guidance following a challenging Q1 FY26. Despite a Q1 loss, the company anticipates a strong rebound, targeting over 20% annualised sales growth and a 10% EBITDA exit margin by Q3 FY26, fueled by strategic manufacturing and retail expansion.

Driving Sales and Margin Revival

Brand Concepts is set to turn the tide after a tough Q1 FY26. The company forecasts a return to a healthy growth trajectory from Q2 onwards, aiming for over 20% annualised sales growth. This optimism stems from a significant sales uptick in June and July. Key to this recovery is the commencement of full-fledged in-house hard luggage production, which is expected to

negate these margin pressures in the very near future

(Page 6). Management anticipates an EBITDA exit margin of 10% by Q3 FY26, bolstered by efficiencies from its new manufacturing facility. The firm saw a

27%, 28% betterment in terms of margin

from items produced internally (Page 18).

Expanding Footprint and Diversifying Portfolio

The company is aggressively expanding its retail presence, targeting 15 to 20 new stores this fiscal year, bringing the total to 60-65. The focus is on opening larger, strategically located COCO stores, including airport and flagship outlets, to enhance customer experience. Brand Concepts also strengthened its brand portfolio, recently signing luxury streetwear brand Off-White for a limited five-store rollout starting Q1 2026. Furthermore, the successful launch of Juicy Couture and strong performance in small leather goods and women's handbags underscore the company's diversified growth strategy.

We are very, very hopeful of exploding in that category as well

(Page 20).

Conclusion

Brand Concepts Limited is poised for a significant rebound, shifting gears from a challenging quarter to a confident growth outlook. Through strategic investments in manufacturing, disciplined pricing adjustments, aggressive retail expansion, and a strengthened brand portfolio, the company is building a resilient foundation. Its forward-looking commentary indicates a clear path to improved sales and profitability in the coming quarters.

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