Mumabi; Shares of Trent Ltd. fell sharply on Monday, hitting a near one-year low after bearish commentary from major brokerages followed the company's Q4 FY25 business update. The stock hit its 10% lower circuit at market open and extended losses to nearly 18%, trading at ₹4,578.95 apiece by mid-morning.

The selloff came despite Trent reporting a 28% year-on-year increase in Q4 sales, which marked a slowdown from the 37% growth in the previous quarter. The company's gross standalone revenue stood at ₹4,334 crore, falling short of analysts’ expectations.

Goldman Sachs downgraded its target price for Trent from ₹7,500 to ₹6,760, citing weaker sales growth and seasonal declines that were sharper than usual. It also flagged concerns over demand weakness or aggressive discounting. Morgan Stanley echoed these concerns, pointing to continued deceleration in like-for-like sales growth.

Despite the current weakness, analysts remain optimistic about Trent's long-term strategy, especially the rapid expansion of Zudio, its value fashion brand. In Q4 alone, Trent opened 132 new Zudio outlets compared to 13 Westside stores.

As of FY25, Zudio has overtaken Westside in both store count and retail space, driven by lower setup costs and strong consumer demand. Trent’s total standalone revenue grew 39% in FY25 but still missed some analyst projections.

The stock’s sharp fall comes amid a broader market decline, with the Nifty 50 also dropping nearly 4%. Out of 24 analysts tracking Trent, 17 still maintain a ‘buy’ rating, with an average 12-month price target suggesting a potential 34% upside.