Ladies and gentlemen, good day, and welcome to the Campus Activewear Limited Q1 FY25 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask question after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Before we proceed on this call, let me remind you that the discussion may contain forward-looking statements that may involve known or unknown risks, uncertainties, and other factors. It must be viewed in conjunction with our business that could cause future results, performance, or achievements to differ significantly from what is expressed or implied by such forward-looking statements. The Campus Activewear management team is represented by Mr. Nikhil Aggarwal, Whole-Time Director and CEO, and Mr. Sanjay Chhabra, CFO.
I now hand the conference over to Mr. Nikhil Aggarwal, Whole-Time Director and CEO, for his opening remarks. Thank you, and over to you, sir.
Thank you, Yusuf. Good evening, ladies and gentlemen. I thank you all for joining our Quarter 1 FY25 earnings call today. Despite a challenging market environment, Campus Activewear has demonstrated resilience and strategic prowess, reporting a volume growth of 3% year-on-year in Quarter 1 FY25, amounting to 5.8 million pairs of footwear. Our agile approach, coupled with a keen sense of fashion and segmentation, has allowed us to introduce products that resonate with the evolving preferences of our consumers. We were able to maintain our gross margins at 53.3% during the quarter, despite a decline in revenue due to extreme summer season, resulting fewer in-store footfalls, coupled with lower wedding dates. There has been a noticeable shift in the revenue mix towards open footwear, reflecting the consumer's choice in response to the elevated temperatures.
Despite these challenges, we have maintained our focus on innovation, continuously offering new and differentiated products tailored to the dynamic Indian consumer by launching 78 new designs in Quarter One. Additionally, we continue to invest in performance marketing to drive sales in marketplace. Despite the increase in minimum wages mandated by the government, which has impacted our margins, we chose not to pass on these higher COGS to our consumers during these subdued market conditions. In line with our long-term strategies to enhance consumer reach, we have strengthened our distribution capabilities by adding a new LFS account in the first quarter. Furthermore, we have expanded our EBO presence by adding 13 new stores, that is 7 COCO and 6 FOCO, across the nation, taking the total count to 275+ EBOs.
Our extensive distribution network is a cornerstone of our business, ensuring that our diverse product offerings are accessible to consumers throughout India. Further, we have strengthened our pan- India distribution network by adding a couple of super stockists and 8 new distributors, further intensifying the penetration in the interiors of the country. With a quest to offer consumer delight, Campus Activewear product range has further enhanced to 650+ new retail outlets, raising the total count to 23,100+ retailers across the country. With our strong brand reputation, diverse product portfolio, value for money proposition, omni-channel capabilities, and robust financial position, Campus Activewear is well positioned to capitalize on the anticipated demand growth in the coming quarters. We anticipate a resurgence in demand post-monsoon, with additional momentum expected from the festive season.
We remain committed in our mission to deliver excellence and would like to express my sincere gratitude to our dedicated team, our loyal customers, and our esteemed shareholders for their continued support. Thank you now, and I will hand over to our CFO, Mr. Sanjay Chhabra, to take you through more details in Quarter 1 FY25 performance.
Thank you, Nikhil. Good evening to everyone, and thank you for joining us for the Q1 2025 Campus Activewear earnings call. Our operational revenues stood at INR 339.2 crores for the first quarter. The company sold approximately 5.8 million pairs of shoes in Q1, up 3.33% year-on-year, owing to our strategic distribution push and higher open footwear sales. The average selling price stood at INR 585 in Q1, driven by higher saliency of open footwear, which was close to 22% versus 18% last year. Our gross margins at 53.3% is flat versus last year, despite the open footwear saliency-led ASP drop.
The revenue mix between men and women and kids stood at 77%-23%, versus last year, same quarter, 80%-20%, reflecting our strategic efforts to expand women and kids category. Our EBITDA for Quarter 1 was at INR 54 crores. The EBITDA margin stood at 15.8% in Quarter 1, owing to higher employee costs driven by headcount addition and inflation, partly offset by lower finance costs. The total cost, excluding COGS, was at INR 147.8 crores versus INR 146.6 crores last year. A marginal increase of 1%, reflecting our efforts to drive efficiency. The PAT stood at INR 25.4 crores in Quarter 1, and PAT margins are at 7.4%.... With this summary, I will now conclude my remarks and open the floor to the moderator for the Q&A. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use only handset while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. First question is from the line of Priyank Chheda from Vallum Capital. Please go ahead.
Hi, Nikhil. My first question is on channel-wise growth. If you can highlight what, how has been the growth in trade distribution, B2C online and B2C offline? And within B2C online, if you can also split the growth of marketplace as well as B2B online, you know, I reckon that we had some challenges in B2B online. Has that been the decline that we saw in B2B online has been arrested or not? That's my first question.
Hi, Priyank. So we have seen actually all the channels getting back on track, in terms of the volume. So let me give you an example, like for MBO, for distribution, we have seen 2 consecutive quarters of, 4.5% plus volume growth. This is the second quarter, consecutive one, along with, distribution and store expansion, like I mentioned. In the online, again, we have seen our marketplace grow by almost 24% in this quarter one versus, this is YOY. And, of course, the O2O has declined. This is in line with the strategy, of reducing the B2B business, the dependency on the B2B business. And the retail channels, the offline EBOs, have also grown by 8% in quarter one.
So, this is very much in line with the strategies of, you know, having different strategy for each channel, very clearly laid out. Like, distribution is our volume growth channel and EBO and brand.com, and our own online channel are basically the ones to drive premiumization and so on. So, Sanjay, you would want to add something to that?
Yeah, just to add on to what Nikhil just now mentioned. So, by and large, the higher base effect of the B2B and O2O channel would be ending this quarter. So this quarter, again, since the base impact was higher, we have seen a degrowth in the B2B, but which has been largely mitigated by the marketplace channel. And net, net, as far as online is concerned, we are now in the trajectory of less than 5% degrowth. So, the impact of higher B2B base is almost done with.
Sorry, I couldn't get the 0.5%. Is the... What was the 5% number? And, you mean that when the higher base will end this quarter, you mean the quarter-on-quarter decline will not be seen from Q2 onwards? These are the two clarifications, sir.
So just, just let me give you a, sort of, split answer. So our marketplace has grown by around 35%, but the other than marketplace business has degrown. So net, net, our B2C online is showing a degrowth in terms of revenue by around 5%.
Right. Okay. And then when you say that this will end it in this quarter, do you mean that the quarter-on-quarter volume decline will get arrested in the current quarter, which is Q1?
Yeah, because last year in the same quarter, one of the big B2B platform was still operational and did a large amount of sales. And from Q2 onwards, they started sort of degrowing big time. So the base is corrected from Q2 onwards. So we will see a sort of flattish or ±5% sort of impact versus 40%+ of degrowth in other than marketplace.
Perfect. Now, my second question is on the traditional channel, right? So we have been adding the retail touchpoints very aggressively. And if I go back to, say, pre-IPO days or pre-COVID days, where we had, you know, sales per touchpoint to be at around, say, INR 1.51 lakh per year, it has fallen down to say almost around INR 3.5 lakh per year, while the competition is yielding a throughput of even higher than ours, right? So do you think that there is a scope to increase this pan-India throughput, and now that we are weak slightly in the tail, as far as trade channel presence goes? So how should we think the growth coming out in the traditional channel in terms of touchpoint plus throughput per touchpoint?
Sorry to interrupt, Mr. Chheda. Your voice is getting muffled. Can you please come a little closer to the device, use your handset?
Is this clear now?
This is little better.
Okay. Should I repeat the whole question then, Nikhil?
Yes, please. Please go ahead, Priyank.
Sorry. Okay. So my question is in terms of sales per touchpoint, we were at around, say, INR 5.1 lakh per year per touchpoint. It has fallen down to INR 3.5 lakh per touchpoint per year, while the competition is 2 times higher than ours. So how do you think that this throughput per touchpoint should pan out going ahead, as well as in terms of the next touchpoint additions for the full year?
Sure, Priyank. So, see, our strategy is to continue to expand the touchpoints, and we have been doing that along with our distribution base. So, the share per counter will also go up. This is just a seasonal effect. Like in quarter one, we've sold higher volumes because of open footwear, but the overall ASPs have dropped. So this was basically because we didn't- we also didn't expect, you know, so much heat waves across the country, which led to higher, much higher than anticipated share of open category. Therefore, that led to, you know, an ASP drop and a lower realization per counter, like you mentioned. So but this will normalize. This is, this is just a seasonal effect, and going forward, we see the share per counter going up.
Okay. On a ASP decline outside this open footwear season that we have seen, as a strategy viewer, we did see that, you know, with a temporary consumption slowdown, Campus will be focusing back to sub-1,000 INR SKU. So, therefore, I mean, how should ASP pan out for the full year versus, say, FY 2023-2024?
Sorry, your voice is muffled, but if I get your question, you're asking the ASP change between FY 2023 and FY 2024, what... Like, going forward, what do we expect in FY 2025?
Yes. I mean, we started focusing back to sub-thousand rupee SKU.
Yes.
Outside this whole issue of heat wave and open footwear getting so higher, how should ASP pan out for the full year?
No, so we, like I said, we were not expecting, you know, this kind of demand for the open category, and it's very understandable given the kind of heat waves we had. So, but this should not really impact. I mentioned also in our last earnings call that we don't really see a big increase in our ASP in FY25, if you recall, because we anticipated the demand scenario. But we do see, you know, demand getting back on track very soon, like, even July onwards, we've seen a decent recovery in demand. So therefore, we don't, you know, anticipate any further ASP drop, I would say, going forward. This was just a seasonal thing.
Okay. Okay.
We're on track with our economical portfolio, like I also mentioned last time. So our ratio to economical has actually also slightly gone up for below 1,000 to 30%, from 27% year-on-year. Our 1,000 to 1,500 portfolio semi-premium has gone up actually from 25% to 30%, again, year-on-year. But our 1,500+ portfolio premium segment has dropped from 46% to 40% year-on-year. So this is what you know is in line with the strategy as well.
Perfect. Now, just last question on the overall, you know, category growth, for the sports and leisure, given the casualization trend that we are witnessing, how would have been the primary sales been for FY24? Would it be double-digit? Because we had some channel issues, so I just want to get the sense of how would have been the category growth for the full year FY24, and any reasons to believe that this category growth should not grow more than double-digit, in fact, should sustain double-digit in FY25, given that we are a smaller category in whole of a INR 100,000 crore kind of a space. So, what should be the overall category growth in FY25? Where should be Campus?
I suppose that we would be looking out for some market share gains in this category tailwind. Yeah, if you can share overall thoughts on the category growth.
So, see, category, this is definitely the fastest growing category still. There is no question about that. The whole sports and leisure space is growing faster than any other footwear category currently, for the last, I think, five years, six consecutive years now. We anticipate, I think in lower double digit for sure, like, kind of, category growth this year, FY25, to happen. Just waiting for the markets to sort of demand scenario to come back, but that's about it, and there should be no challenge, and we should grow, you know, in line or faster than the category. So I don't see any challenge with respect to our market shares increase, for this year as well.
We are just, honestly hoping and waiting for the markets to normalize and the demand scenario to come back. But we are fully geared up for, you know, the coming quarters.
Oh, amazing. All the best, team. I'll get back in the queue for further questions.
Thank you. Next question is from the line of Vidisha Sheth from Ambit Capital. Please go ahead.
Hi, good evening, team. My first question was on the channel inventory. So where does it stand as of date, given the muted consumption environment? Is it still elevated, or has it largely normalized?
Hi, Kirti, this is Sanjay. Channel inventory, if you see the way the quarter shaped up, it was more towards the open footwear, which-
... eventually means that we did more primary on the open front, open footwear, and slightly lesser as far as the shoes is concerned. So which by and large indicates that the channel inventory is sort of coming to the levels or is at par with the demand in the market. Currently, we continue to hold around 60-odd days of inventory in the distribution channel, anywhere between 60-80 days, and that continues to be the norm, considering the lead time for production of the NPDs.
Got it. So it's largely normalized, and going forward, the primary growth and the secondary growth should largely be in line?
Yeah.
Okay. The second question was, if we were to remove the high mix of the open footwear portfolio that we've seen this quarter, would the increase in portfolio mix of sub-1,000 INR price point products still happen? The increase that we've seen from 27% to 30%.
Okay, I would say that, it, it's not that we are, by and large, driving a sub-1,000 INR price point category. We did try to fill certain gaps in our product portfolio in that particular price point, wherever we felt that there is a market demand and we are absent in that price point.
Mm.
However, we would continue to consciously drive a mix of our products through different channels. So let's say the distribution would be a lever for driving volume, and our other channels, including the online, our brand.com and our own stores, would be driving the mix. Which means they would be offering the consumers a wider range of product, and hence, on an overall basis, we'll continue to be conscious about our ASPs going forward.
Got it. My third question was if you could elaborate on the consumption or growth pattern seen across key states in the first quarter and the second quarter to date?
Which key states are you talking about?
Key states in the north.
Sure. So, North, specifically, we have seen a slight decline in our salience, from, let's say, 41%-38%. This is year-on-year. This is primarily due to the heat wave. And we have seen our West and South portfolio grow by almost 4%. The East is also flattish, at about, has slightly grown from 17%-18%. And Central is, also grown from 6 to 7.8%. So it's basically North that has taken a little bit of, a hit in terms of the salience because of the extended heat waves. But we don't see any concern on that side.
Got it. So just to marry these two points, this point and the fact that our open footwear salience has increased, so the open footwear portfolio would have largely picked up in the regions except North?
That's right. It's actually pan-India, like even South, is a very big market for open category, South and East.
Mm-hmm. Got it.
Almost like a pan-India category. We can't really say just the North-centric portfolio.
All right. Noted. Just the last question, what has led to the 21% increase in the employee cost that we've seen this quarter?
Okay. So this is primarily driven by our additional headcounts, primarily in the front-end function, the distribution business, and also in the stores, with the addition of new stores over the period. And so of course, the year-on-year inflation through the increments. So these two factors are driving the higher employee cost.
Understood. Thank you. That's all from my side.
Thank you. Next question is from the line of Umang Mehta from Kotak Securities. Please go ahead.
Yeah. Hi, thanks for the opportunity. So most of my questions are answered, just two of them, if you can help me. First one was on your... You mentioned about performance marketing investments continuing. Was there any reason for a special call-out, or is it in line with what you've been doing historically?
That's, that's perfectly in line with what we have been doing for last three odd quarters. The only reason for the call-out is that we have seen a growth in the marketplace, and that requires a bit of investment in the performance marketing.
Understood. The second one was on the stores which you've opened. So I realized that the mix of COCOs was a bit on the higher end. Again, was that like a one-off, and you maintain that most of the new stores will be on the franchisee going forward?
No, so it's just a phasing thing, Umang. We, we're still on track with a ratio of almost 65-70 COCO to 30-35 COCO. This is just a phasing thing that can vary from quarter to quarter.
Understood. Got it. Thanks, and all the best.
Thank you.
Thank you. Next question is from the line of Mousumi from Equentis. Please go ahead.
Yeah, hello. Thanks for the opportunity. I wanted to ask, what are your target markets when you are looking to expand your store count?
Sorry, come again, please. We can't... I can't hear you. You're not clear.
I'll just-
Can you come closer to the mic?
Hello, can you hear me?
Yes, better.
What are your target markets when you are looking to expand your store count?
... did you ask what is the store count that we-
No, no, no, no. I'm asking, what are your target markets? Which are your focus markets when you are looking to expand or, come up with a new store?
Sure, sure. So, for EBOs, right?
Yes.
Yeah. So EBOs, we are already present in 27 states as we speak. And like for example, we're just opening a new store in Bangalore. So there are, you know, there are markets basically in South now that we are actively pursuing. That is one space that has the least number of stores. So it's basically South and a bit of East, West. West also and South and West, I would say, in line with the company strategy.
The gross margins for this year?
Gross margins for this year?
Guidance on EBITDA, EBITDA margin or gross margins for this year?
We don't give any guidance. We shared some guidance in the last call.
Hmm.
Sticking by it.
Okay. Thank you.
Thank you.
Thank you. Next question is from the line of Aliasgar Shakir from Motilal Oswal Mutual Fund. Please go ahead.
Yeah, hi. Thanks for the opportunity. Hi, Nikhil. Question on, you know, the BIS. I understand almost 15-20% of industry, you know, revenues or rather, you know, products in the particularly sportswear, were coming from imports. Am I correct that from the first of August, that has been, you know, completely stopped? So if you could just share, you know, I mean, whether that is true and then how much inventory would be there in the system and how we should benefit with this, you know, policy?
Sure. So BIS is fully in effect now, as of first of August. And, you know, the government has mandated time till end of June 2025 for everyone to liquidate their non-BIS inventory. And we are seeing some changes in the market already, like, like I know from the channels that the Chinese inventory and the fake things that are being imported from China has reduced significantly. The imports have also been largely curtailed. So there is definitely a positive impact that we see in the market on account of that, at least in terms of imports. It's just a matter of the inventory that they're holding today, all the channels of Chinese imports or the other, you know, from other countries.
We believe that they should, you know, ideally be liquidating all of that by this season and get done with it.
You said it's the time allowed is till June 2025 to liquidate all of that?
That's right, yes. For non-BIS.
Non-BIS. And what about the domestic market? Even here, I think a lot of small unorganized, you know, players had, you know, sportswear with non-probably BIS compliance. So what's the policy here? And, you know, I mean, what is the impact of that we would also have in terms of the cost that we would have to bear for the BIS compliance?
So for us, the cost impact on BIS is very, very, very small, because we were already making very high quality shoes. So for us, really, the cost on in terms of materials with respect to BIS standards has not really changed. But we expect the other smaller players in the industry to have a significant cost impact on account of BIS, because they'll have to really upgrade the specification of the material that we use in the footwear.
Okay. Can you just throw some little more color when you say the increase in cost for them, you know, what kind of cost increase will happen? Because obviously, there was a lot of big price arbitrage between the products that we were selling and they were selling, and what is the kind of compliance they will have to have?
Hi, Ali, this is Sanjay. So from a cost perspective, as Nikhil mentioned, for us, it was a very little impact. For us, it was more of a cost for labeling, for having some equipment to label the finished goods. But by and large, our components were fully compliant, even prior to the BIS coming into effect. However, for smaller players, they'll have to get back to the drawing board and see that their soles, whether they are compliant in terms of flexibility and composition, whether the uppers are using the right kind of fabric, as specified by the guidelines. If at all they don't have an in-house lab to test, then they'll have to get the tests conducted through the external labs, and that will have a cost impact.
These are the three cost elements which are the basic ones post the BIS implementation, which will trigger to all the footwear players.
Got it. This is very clear. There is no clear timelines yet for the domestic industry, right? Or for the SME and ME, they are still not given a deadline, right, for BIS compliance or has it been?
That's right. Yeah, I think turnover of less than INR 50 crore companies are not falling into the BIS bracket at the moment, but we expect that to change as we move. I think the endeavor of the government is to mandate it for everybody.
... Got it. This is very useful. Just last question on the margin. So, if you can first just remind what is the margin outlook you gave in the last quarter? And, you know, assume that if, as Sanjay also mentioned, that, you know, this was the last quarter where we saw the impact because of B2B. If that gets normalized and we get into a run rate of double-digit growth, then what is the normalized margin our business can do? Can we go back to the stable state margin we were doing earlier of, you know, 17%-18%? Yeah, thank you.
Sure. If you really want me to call it out, we will be aspiring to get to those numbers for sure. There is no doubt. Even in a very tough macro, to be very honest, quarter one was highly muted in terms of demand. And in spite of that, we've been able to deliver 15.8% EBITDA margins, which obviously we're very proud of, because it was unprecedented in terms of the demand this quarter. So therefore, in a normalized scenario, we certainly expect a higher margin obviously.
Got it. And just last bookkeeping question on the—can you just call out what is the share of B2B in the overall D2C online business in this quarter?
Sure. Sorry, the share of B2B?
Correct. You mentioned that has come down significantly, so I was just thinking if you could share the mix?
Yeah. In the overall scheme of things, it is around 10 odd%.
Of the total revenue?
Yes.
Almost 50% of our revenue is D2C, right?
No, if your... I'm sorry, I don't understand your definition of B2C if you are-
Okay, I'm saying online. Basically, the entire online business out of INR 340 crores is 50%?
No, it is around 30, 35-37, yeah, 35%.
Okay. And out of that, of the total revenue, 30, 10% is the B2B?
Yeah.
Got it. Okay, this is very clear. Thank you so much, and wish you all the best for the coming few quarters.
Thanks.
Thank you. Before we move to the next question, a reminder to the participants, to ask the question, you may press star and one. Next question is from the line of Ankit Kedia from PhillipCapital. Please go ahead.
Sir, you spoke of open footwear doing exceedingly well in the quarter, while you didn't intend to, you know, have so much. I just wanted to know, you know, is the product expansion very good that, you know, the consumers came to us for open footwear? Because competition could also be there. Secondly, if there was so much demand, you know, from an inventory perspective, how could you meet this demand? Because you would have not thought of such unprecedented demand in open footwear.
Hi, Ankit. We do have a very agile supply chain, you know, like we've mentioned in the past as well. We did prepare for a higher uptick. We expected a higher uptick than the previous year-on-year quarter one in terms of open category. It was more than what we anticipated, but we were kind of prepared with it as we have a very agile supply chain, and we could manage it within the same season to be supplied, right? That is what gave us a higher volume uptick in the open category.
What will be the ASP difference between a closed footwear and open footwear for you? Typically, open footwear, what exactly are we selling?
So open is basically all around, sandals and slippers. These are the broadly two major categories. We do a bit of clogs as well, but that's still, much smaller compared to the other two. The ASP difference is within the range of INR 150-INR 200. The difference would be INR 150-INR 200.
Sure. And, do you think going forward, given the response which you have, it makes sense to push open footwear going forward, as well? Or do you want to maintain it that, you know, around 20% plus, minus, range?
Sure. So open definitely, you know, strategically, it will be an important category, going forward. This is a seasonal category, which is basically mostly in quarter one. And, you know, given the demand and the brand positioning that we command, the top-of-mind recall, it definitely is a very low-hanging fruit that we can, you know, encash upon. So we would be looking to drive this category, properly and with a much more rigor, even from next year onwards. Therefore, but at the same time, we do not expect our closed footwear category share to sort of be cannibalized by the open category. By doing that, we should be able to maintain, you know, our ASPs, or at least not let them drop beyond the point.
Sure. You know, my next question is on the trade channel. You know, this quarter also has declined around 6-7% overall, not 52% contribution. Do you think this can go back to the 60% odd contribution in next 3 years, given the growth and investments you are doing in the offline channel, or this will remain in that 50-55% ballpark range?
So, trade distribution revenue has dropped largely on account of ASP drop because of open category. It's not the volume. The volume has actually grown in the offline channel. So, as soon as, you know, the open category. The closed is back, let's say, in quarter two onwards, we should be able to recover the revenue growth in the distribution channel. And going forward, I mean, the aspiration has always been to have a 50/50 mix between distribution and D2C. So I see really no change in going forward, because our retail is now retail like online, offline EBOs, LFS, canteen, CSD, CPC, our own brand.com. All of these put together have also now been a significant contributor.
The share of this offline channel has gone up from almost 11% to 13%. So, you know, we do expect this to now also contribute significantly going forward. So distribution will probably remain at 50-51% in the same range going forward.
Sure. My last question is on the margins. You know, with this open footwear coming in, do you see open footwear at a lower margin versus closed footwear, or it's pretty much similar multiplier?
Okay. Just on the gross margin front, we were flat versus last year, despite the increase in saliency of open footwear, which is a clear reflection of the fact that we are not trying to sort of downsell, or rather maintain the product portfolio in a range which leads to our margin thresholds. I hope that answers your question.
Sure. And if I could squeeze in one more, you know, how is the discounting by competition? Because, you know, pretty much if we have, you know, had a tough quarter, competition would have a worst quarter, right? And given that, you know, and last few quarters have been challenging, how are they liquidating inventory? Because they would not have working capital to have new products in the system. Are you seeing discounting being higher by competition? They are reducing the shifts from 3 to 2 to 1? What's happening out there?
Yeah, we are seeing higher discounting by the competition. I'm talking about the private, smaller players in the market. They are definitely discounting by a much higher level. This is largely due to the BIS impact as well. So we have been able to maintain our margins while also selling the non-BIS inventory and selling the open category. You know, we've been able to maintain margins. Going forward, you know, we expect as the demand picks up, the ASPs to also pick up from there.
And your manufacturing is in full swing today, or you have also cut down shifts at the factory given this demand environment?
No, we definitely calibrated the factory output in line with the demand. Also, because there was a robust drive from our end in terms of selling the non-BIS goods as well, as mandated by the government. So keeping both the views in mind, the muted demand and the sell-out of the non-BIS, we have calibrated our production accordingly in quarter one.
Understood. Thank you so much and all the best, Nikhil.
Thank you.
Thank you. Participants, to ask a question, you may press star and one. Next follow-up question is from the line of Priyank Chheda from Vallum Capital. Please go ahead.
Nikhil, what would be our contribution from the sneakers as a category, and how has been the progress over here? Any growth numbers, any revenue contribution numbers that you would like to talk on this?
Sure, Priyank. So this is something we're very excited about. The sneakers portfolio has basically grown by almost 100%, even though the base is obviously smaller compared to the sports portfolio. But the you know, the demand and the acceptance in the market is very promising. So going forward, it is definitely one of the key areas that we would be continuing to focus on. It's a big growth lever, along with the women and kids category, where the women share has also gone up, both in sneakers and in sports.
Super. And then on the South as a regional mix, which, where our efforts have been concentrating for quite some time now. So any overall change in the GTM strategy for South? I mean, we understand that we have a largely online as a channel to penetrate in South market. So what are the efforts that are left to, you know, penetrate further, deeper, and as well as in the breadth via trade channel in the Southern markets?
Sure. So South is, has been a focus, both on online and offline. So in distribution, in the traditional channel also, we've opened a couple of new distributors in South, and, and enrolled a few more stores, along with enhancing and, you know, we've invested in the sales team and, and, and created a very, very good team on ground as well. So, you know, Also, in terms of product portfolio, they, they do require a higher share of open versus closed category. That is also in line, you know, with, with the growth strategy in South. So we, we are doing all of these efforts in order to grow our South, South portfolio. So there's no reason that we should not see a growth from there, very soon, like within this year.
... Okay, and on the new LFS account that we have opened, so would that mean that the growth in that account would gradually pick up, or is it that day one, we grow it in that channel? And would that add another 200 or touchpoints from 1300 to, say, 1500?
Okay, this is Sanjay. The growth in the LFS is a gradual progression, and then we do get an entry into certain number of test stores, and then eventually it amplifies based on the success of our product or the particular category. So it will be a period of, I would say, three to four quarters, wherein we would be present in all the stores of that particular chain. It will be a gradual progression.
Got it. And Sanjay, just last clarification on that B2B, B2B online, which you said it would be around, say, 10% of the total revenues, which would be, mean, which would mean that it would be INR 30-35 crores of total revenue, and annualize that would be around, say, INR 120-140 crores. And so for the full year, it would remain flat, right? I mean, we, we ended B2B around INR 130-140 crores last year.
Yeah, that's right. INR 150 odd crores.
Got it. Got it. Thank you.
Thank you. Next question is from the line of Neeraj Mansinghka from White Pine Investment Management Private Limited. Please go ahead.
Yes, a few things. One, what is your presence in? Can you share? Tell something about what is your estimate of the market share in the sports category in LFS and the retail side?
So LFS is a fast-growing channel for us. Honestly, we won't have the numbers for market share for Campus. We don't track that yet, as it's still a very, you know, small contributor to the overall revenue. So there's ample growth for revenue, like it's a completely wide space for us at the moment. So the focus is more on adding every quarter and every, you know, regularly adding big and strong LFS partners on board. And that's what we're driving at the moment. So I think the market share number would be relevant probably a couple of quarters from now.
Okay. Any thoughts on how your market share has moved in the open footwear over the last few years, one or two years?
Open, again, no, we wouldn't have a very significant market share on the open side, to be honest. Even that, you know, like I mentioned earlier, it's a low-hanging fruit. It's a, it's a wide space. The only thing we'll have to be conscious of is our ASPs and the margins being contributed from the open category. But given how strong the brand acceptance is in the market, it, it. We've received a very, very good response in quarter one from the open category. So it is encouraging to definitely, you know, increase the share of this category going forward.
The open footwear you're talking about is generally the EVA-based products, generally which have, you know, the growth for during pandemic.
Price points, we do have a single EVA. We also have EVA with rubber and TPR outsole, which is a more premium product on the sandal and slipper side. So it's a range. We start at almost INR 499, and we go up as high as INR 999. INR 999 in the open category is a very premium offering, which very few brands in the country are basically providing.
The last question, any thought on you, you are opening a lot of retail stores, and I thought Athleisure was a area that you may look at. So any thoughts on that?
It's come, come again in the second half.
Mm-hmm.
We're opening a lot of retail stores.
Okay, so I thought, you can also, are you thinking about moving to athleisure, like, athleisure wear, in future?
So we are already doing a couple of other categories, like we have backpacks, we have socks, which is actually doing quite well.
Mm-hmm.
They're a very decent contributor to the revenue of the EBOs. We also have some other accessories, like caps and stuff, but apparel is a big category, which we would need a little bit more time to venture into. It's not on the cards at the moment.
But is it, is it that, after some threshold or some EBOs would like to look at that? Is it that the way to look at it, or?
Right. Yeah. It would make more sense after we have a couple of hundred stores.
Okay. Thank you very much.
Thank you. Ladies and gentlemen, to ask a question, you may press star and one. Participants who wish to ask a question may press star and one on their touchtone telephone. As there are no further questions from the participants, on behalf of Campus Activewear Limited, we conclude this conference. Thank you all for joining us. In case of any further queries, please reach out to Campus Activewear's Investor Relations team at ird@campusshoes.com. You may now disconnect your lines. Thank you.