Metro Brands’ shares surged nearly 7% in intraday trading on Friday, August 9, marking two days of gains after announcing a partnership with New Era Cap, a popular American headwear brand.
New Era Cap, based in New York and known for its sports fashion headwear, has signed a long-term licensing deal with Metro Brands. This partnership will boost New Era’s presence in India and help Metro Brands grow in the athleisure market.
As part of the deal, Metro Brands Ltd (MBL) gets exclusive rights to distribute and sell New Era products like headwear, clothing, and accessories in India through retail stores and kiosks. MBL will also handle online sales through its websites, New Era’s sites, and other online marketplaces. New Era products will also be sold in upcoming Foot Locker stores in India.
The stock jumped as much as 6.78% during intraday trading, hitting a high of ₹1,430.10. Over the past two days, the stock has gained over 9%.
Stock Performance So Far
With today’s surge, the stock is now just 1% below its record high of ₹1,440.45, set on November 30, 2023. The stock has risen 44% from its 52-week low of ₹992.65, recorded on June 4, 2024.
Over the past year, the stock has increased by over 25%, with a 13% gain in 2024 so far. It has delivered positive returns in six of the eight months this year. In August alone, it has risen by 3.5%, continuing its upward trend for the fourth month in a row. The stock rose 10% in July, 8% in June, and 6% in May. However, it dropped by about 6.5% in April after rising 1% in March and 3.5% in February. In January, the stock declined by 13%.
Metro Brands Ltd, which operates over 800 stores across India, is set to launch the first Foot Locker store in the country. The company’s portfolio includes well-known Indian brands like Metro Shoes and Mochi, as well as popular international brands such as Crocs, FitFlop, and Fila.
“The Indian headwear market has grown a lot through online shopping. Seeing this opportunity, Metro Brands plans to expand in the market by bringing sports culture into the cap industry with New Era,” the company stated.
New Era is famous for its official caps for Major League Baseball and the National Football League, and for its signature styles like the 59FIFTY fitted cap, the 9FIFTY snapback, and the adjustable 9FORTY, which are popular among sports fans and fashion lovers.
Nissan Joseph, CEO of Metro Brands Limited, said, “At Metro Brands Ltd, our goal is to bring the best global brands to India and meet all our customers’ athleisure needs. This partnership is a big step in that direction. It will allow us to transform the cap market, improve the retail experience, and meet our customers’ changing preferences. We believe that with this partnership, caps will become the next must-have accessory.”
Meanwhile, Metro Brands’ board of directors is scheduled to meet today, August 9, 2024, to review and approve the unaudited financial results for the quarter ending June 30, 2024 (Q1FY25).
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
