Men’s innerwear brand XYXX, which closed the last fiscal with Rs 110 crore revenue, is targeting 50-70 per cent growth this fiscal. The brand foresees 50 per cent growth year-on-year for the next 10 years, Yogesh Kabra, founder, XYXX told ETRetail.
To meet the expected revenue target, the brand is focusing on offline expansion along with category expansion. It has recently forayed into the athleisure category.
“We’ve always been essential wear – innerwear and loungewear – brand and our 96-97 per cent of revenue comes from these categories. Recently, the categories that we’ve launched are a little more towards outerwear and as we will inch closer to the summer season, we plan to double down on the athleisure wear,” he said.
In general trade, the brand has a presence across 22,000 stores, and by FY 25, it aims to grow it by 25-30 per cent expanding its presence to 30,000 general trade stores.
The brand entered modern trade 8-12 months ago and has a presence across 250 stores and foresees a 300 per cent expansion in modern trade stores by this FY 25.
“As far as EBOs are concerned, we currently have 5 exclusive brand outlets. We have recently launched two new stores – Surat and Infiniti Mall Malad. We plan to open 15-20 stores by FY 25. We are not fixated on hitting a number of stores milestone, however, we focus more on operating profitability per store,” he asserted.
The average store size of the brand spans across 500 sq ft and CAPEX to open each store stands at Rs 2,000 – Rs 3,000 per sq ft. At present, all the stores of the brand are company-owned and company-operated.
For distribution, the brand currently has 150 channel partners and plans to increase it by 25-30 per cent by FY 25.
At present, 50 per cent of the revenue of the brand is contributed by online channels. Modern trade contributes 2 per cent, and the remaining 48 per cent of the revenue is contributed by general trade.
“Currently, 35 per cent of our revenue comes from the North, 30 per cent from the South, 25 per cent from the West and the remaining 10 per cent is contributed by the East,” he stated.
The brand, which raised Rs 110 crore in its Series C funding in May 2023, has no plans to raise fresh capital in the next 12-13 months.
