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Arvind Shareholders Approve 20% Asset Sale in Subsidiary and ESOP Trust Restructuring
Arvind Limited's shareholders have passed four special resolutions with over 99% approval via a postal ballot concluded on March 11, 2026. A major highlight is the approval for the sale, disposal, or lease of assets belonging to its material subsidiary, Arvind Advanced Materials Limited (AAML), exceeding 20% of the subsidiary's asset value. Additionally, the company received the green light to restructure its 2021 ESOP scheme to be managed via an employee welfare trust, including funding for secondary share purchases. These moves provide the management with significant flexibility for asset monetization and employee incentive management.
Key Highlights
Shareholders approved disposal of assets exceeding 20% of material subsidiary Arvind Advanced Materials Limited (AAML).
Amendment of ESOP Scheme 2021 to be administered through an irrevocable employee welfare trust.
Company authorized to provide funds to the trust for secondary market acquisition of its own shares.
All resolutions passed with a massive majority ranging from 99.74% to 99.99% of votes polled.
Promoter and institutional voting participation was high at 99.56% and 95.50% respectively.
💼 Action for Investors
Investors should monitor for specific deal announcements regarding the sale of assets in the Advanced Materials business, which could unlock value or reduce debt. The overwhelming shareholder support indicates high confidence in the current management's strategic direction.
Arvind Limited MD Susheel Kaul to Step Down Effective March 9, 2026
Arvind Limited has formally announced that Mr. Susheel Kaul will step down from his role as Managing Director and President (Textiles) effective March 9, 2026. This follows his initial resignation submitted on January 9, 2026, which was cited as being for personal reasons. The transition follows a standard two-month notice period as per company policy and mutual agreement. As a key leader in the textiles division, his departure marks a significant change in the company's senior leadership team.
Key Highlights
Mr. Susheel Kaul to be relieved from his duties as Managing Director on March 9, 2026.
The resignation was originally tendered on January 9, 2026, citing personal reasons.
Mr. Kaul will also cease to be a Director of the company following the closure of business hours.
The transition period adhered to a standard 2-month notice period as per company policy.
The company is expected to announce a succession plan for the Textiles division leadership.
💼 Action for Investors
Investors should monitor the company's upcoming announcements regarding a successor for the Managing Director and President (Textiles) role. Leadership stability in the textile segment is crucial for maintaining operational performance.
Arvind Ltd Seeks Approval for 90 Lakh Share ESOP Trust and Subsidiary Asset Disposal
Arvind Limited has initiated a postal ballot to seek shareholder approval for transitioning its 2021 ESOP scheme to a trust-based model. The proposed 'AL ESOP Trust' is authorized to acquire up to 90,00,000 shares through secondary market purchases, supported by an interest-free loan from the company capped at 5% of its paid-up capital and free reserves. Additionally, the company is seeking a mandate for its material subsidiary, Arvind Advanced Materials Limited (AAML), to sell, lease, or dispose of assets exceeding 20% of its total asset value. This move suggests potential strategic restructuring or asset monetization within the advanced materials division.
Key Highlights
Proposed secondary acquisition of up to 90,00,000 equity shares through the newly formed AL ESOP Trust.
Company to provide interest-free loans to the Trust, limited to 5% of aggregate paid-up capital and free reserves.
Seeking approval for material subsidiary AAML to dispose of assets exceeding 20% of its total value in a financial year.
Amendment of 'AL - Employee Stock Option Scheme 2021' to allow trust-based administration and exercise price adjustments.
E-voting period is scheduled from February 10, 2026, to March 11, 2026.
💼 Action for Investors
Investors should monitor the voting results and subsequent announcements regarding Arvind Advanced Materials Limited, as the 20% asset disposal threshold indicates potential significant restructuring. The shift to a trust-based ESOP model is a standard corporate move to manage dilution and employee incentives effectively.
Arvind Fashions Seeks Approval for ESOP Trust and Secondary Acquisition of 26 Lakh Shares
Arvind Fashions Limited has issued a postal ballot notice to seek shareholder approval for managing its Employee Stock Option Schemes (ESOS 2025, 2022, and 2016) through a newly established 'AFL ESOP Trust'. The company plans to allow the trust to acquire up to 26,00,000 shares via secondary market purchases for the ESOS 2025 scheme. Additionally, the trust will handle up to 6,95,000 shares for the ESOS 2022 scheme. This transition to a trust-based model includes the company providing financial assistance to the trust to purchase shares from the secondary market, which helps avoid equity dilution.
Key Highlights
Establishment of 'AFL ESOP Trust' to administer ESOS 2025, 2022, and 2016 schemes.
Proposed secondary acquisition of up to 26,00,000 equity shares for the ESOS 2025 scheme.
Trust to manage up to 6,95,000 shares for the ESOS 2022 scheme through primary or secondary routes.
Company to provide funds to the trust for the acquisition of its own shares from the market.
E-voting period for shareholders is scheduled from February 10, 2026, to March 11, 2026.
💼 Action for Investors
Investors should recognize that using a trust for secondary share acquisition is generally positive as it prevents equity dilution, though it requires company cash. Shareholders may participate in the e-voting process ending March 11, 2026.
Arvind Fashions Q3 FY26: Revenue Up 14.5% and Adjusted PAT Surges 65%
Arvind Fashions Limited reported a strong Q3 FY26 with revenue growing 14.5% YoY to INR 1,377 crores, supported by a healthy 8.2% like-for-like growth in retail. Adjusted PAT (excluding one-time wage charges) jumped 65% to INR 44 crores, reflecting significant operating leverage and a 40 bps expansion in EBITDA margins. The flagship brand, U.S. Polo, led the performance with over 25% growth, while the online B2C channel surged by nearly 50%. The company also completed the reacquisition of a 31.25% stake in Flying Machine, aiming to pivot it as a Gen Z-focused digital-first brand.
Key Highlights
Revenue increased 14.5% YoY to INR 1,377 crores with EBITDA growing 18% to INR 195 crores.
Flagship brand U.S. Polo Association delivered over 25% growth with 11% like-for-like growth.
Direct-to-consumer (DTC) channels now account for 63% of total sales, up 260 bps YoY.
Adjusted PAT grew 65% YoY to INR 44 crores, driven by better channel mix and cost efficiencies.
Company added 41,000 sq ft of retail space in Q3, on track for 1.5 lakh sq ft expansion in FY26.
💼 Action for Investors
Investors should note the strong momentum in U.S. Polo and the successful scale-up of the online B2C channel which is driving margin expansion. The full ownership of Flying Machine and growth in footwear adjacencies provide additional long-term upside potential.
Arvind Q3 FY26: Net Profit Rises 17% to ₹125 Cr; AMD Revenue Surges 32% to ₹496 Cr
Arvind Limited reported a strong Q3 FY26 with consolidated revenue growing 14% YoY to ₹2,373 crore and PAT (before exceptional items) rising 17% to ₹125 crore. The Advanced Materials (AMD) segment was a standout performer, recording its highest-ever quarterly revenue of ₹496 crore, a 32% YoY increase. While the textile segment grew 9%, margins were slightly impacted by ₹25 crore in tariffs and a one-time ₹23.5 crore provision for the new Labour Code. Net debt reduced slightly to ₹1,236 crore, and the company maintains a positive outlook for FY26 with double-digit growth targets across segments.
Key Highlights
Consolidated Revenue grew 14% YoY to ₹2,373 Cr, with EBITDA increasing 15% to ₹286 Cr.
Advanced Materials (AMD) segment achieved record revenue of ₹496 Cr, growing 32% YoY with 15.5% margins.
Garmenting division recorded its second consecutive quarter of 10 million+ pieces, driving 23% revenue growth in that sub-segment.
Net Debt decreased to ₹1,236 Cr from ₹1,270 Cr in the previous quarter, showing improved cash flow management.
Management expects FY26 revenue growth of 10-12% for Textiles and 17-20% for the AMD segment.
💼 Action for Investors
Investors should monitor the rapid scaling of the high-margin Advanced Materials division which is becoming a significant profit driver. The company's ability to maintain 12% EBITDA margins despite global tariff pressures and labor code provisions suggests strong operational resilience.
Arvind Q3 FY26: Net Profit Up 17% to ₹125 Cr; Record EBITDA at ₹286 Cr
Arvind Limited reported a strong Q3 FY26 with consolidated revenue growing 14% YoY to ₹2,373 crore, driven by volume growth in textiles and a 32% surge in the Advanced Materials Division (AMD). Net profit increased by 17% to ₹125 crore, while EBITDA reached an all-time high of ₹286 crore despite a ₹25 crore impact from trade tariffs. The AMD segment showed exceptional performance with margins expanding to 15.5% due to operational efficiencies and defense orders. Management maintained a stable debt profile and provided a positive growth outlook for the full year FY26.
Key Highlights
Consolidated revenue grew 14% YoY to ₹2,373 Cr, while PAT increased 17% to ₹125 Cr.
Advanced Materials Division (AMD) saw record revenue of ₹496 Cr (up 32%) and 15.5% EBITDA margin.
Garmenting revenue rose 23% YoY, recording its second consecutive quarter of 10 million+ pieces.
EBITDA margins reached 12.0%, which would have exceeded 13% excluding the ₹25 Cr tariff-related impact.
Net debt remained stable at ₹1,236 Cr with run-rate ROCE improving by 150 bps to 16%.
💼 Action for Investors
The strong growth in the high-margin AMD segment and resilient garmenting volumes indicate a successful structural shift in the business mix. Investors should monitor the impact of global trade tariffs, but the company's operational efficiency makes it a strong performer in the textile sector.
Arvind Q3 FY26 Standalone Revenue Rises 16% to ₹1,842 Cr; Net Profit Steady at ₹62 Cr
Arvind Limited reported a 16% year-on-year growth in standalone revenue from continuing operations, reaching ₹1,842.26 crore for the quarter ended December 31, 2025. Net profit for continuing operations remained nearly flat at ₹62.22 crore, compared to ₹62.05 crore in the same period last year, primarily due to a ₹25.34 crore exceptional charge related to new Labour Codes. The company has completed the demerger of its Advanced Material Undertaking into a separate subsidiary, which is now reflected as discontinued operations. Management is actively monitoring and mitigating potential risks from new US trade tariffs through supply chain adjustments.
Key Highlights
Standalone Revenue from continuing operations grew 16% YoY to ₹1,842.26 crore from ₹1,588.27 crore.
Profit before tax (continuing) increased to ₹89.57 crore vs ₹83.49 crore in the previous year's quarter.
Recognized an exceptional loss of ₹18.96 crore (net of tax) due to ₹25.34 crore in past service costs for new Labour Codes.
Advanced Material Undertaking (AMU) demerger completed; prior year revenue of ₹293.87 crore reclassified to discontinued operations.
Nine-month standalone revenue reached ₹5,149.28 crore, up from ₹4,651.40 crore in the previous year.
💼 Action for Investors
Investors should focus on the core textile business's volume growth and the margin profile of the newly demerged Advanced Materials subsidiary in consolidated results. Monitor management's commentary regarding US tariff mitigations as they could impact export pricing and sourcing strategies.
Arvind Ltd Incorporates New Step-Down Subsidiary in UAE for Fibre Glass Manufacturing
Arvind Limited's step-down subsidiary, Arvind PD Composites Private Limited, has incorporated a new entity in the UAE named Arvind PD International FZ-LLC. The new company has an authorized capital of AED 150,000 and will focus on the manufacturing and processing of fibre glass and related industrial products. This move marks an international expansion for Arvind's technical textiles and composites business. While the entity is newly incorporated and yet to start operations, it aligns with the company's strategy to grow its specialized materials portfolio.
Key Highlights
Incorporation of Arvind PD International FZ-LLC in the UAE as a step-down subsidiary.
Authorized capital of AED 150,000 divided into 150 shares of AED 1,000 each.
The entity will engage in manufacturing and processing of Fibre Glass and industrial products.
The document specifies a 51% shareholding/control acquired in the new entity.
The subsidiary is newly formed and has not yet commenced commercial operations.
💼 Action for Investors
Investors should view this as a positive step toward diversifying the company's geographic presence in the high-margin composites segment. Monitor future quarterly updates for capital expenditure plans and revenue contributions from this UAE unit.
Arvind Fashions Q3 FY26 Revenue Up 14.5% to ₹1,377 Cr; Adjusted PAT Surges 65%
Arvind Fashions reported a strong Q3 FY26 with revenue growing 14.5% YoY to ₹1,377 crore, driven by robust performance in direct-to-consumer channels. The company's EBITDA (excluding other income) rose 18% to ₹195 crore, reflecting a 40 bps margin expansion. While reported PAT was impacted by a ₹29 crore provision for the Code on Wages, the adjusted PAT grew significantly by 65.2% YoY. The company continues its aggressive expansion with 43 new EBOs added during the quarter, maintaining a healthy inventory turn of 3.7x.
Key Highlights
Revenue grew 14.5% YoY to ₹1,377 crore, supported by 8.2% Like-to-Like (LTL) retail growth.
Online B2C business witnessed a massive 50% YoY growth, significantly increasing its share in the channel mix.
EBITDA margins expanded by 40 bps to 14.2% (₹195 Cr) due to sourcing gains and operating leverage.
Adjusted PAT (before Code on Wages impact) grew 65.2% YoY, although reported PAT was ₹26 crore after the regulatory provision.
Added 43 gross EBOs in Q3, bringing the total store count to 1,022 with a focus on the asset-light FOFO model.
💼 Action for Investors
Investors should focus on the strong operational momentum and margin improvement as signs of successful premiumization and direct-channel focus. The one-time wage impact is a non-recurring regulatory hit, making the underlying business growth the primary driver for long-term valuation.
Arvind Fashions Q3 FY26: Revenue up 14.5% to ₹1,377 Cr, Adjusted PAT Jumps 65%
Arvind Fashions reported a strong Q3 FY26 with revenue growing 14.5% YoY to ₹1,377 crore, driven by robust performance in direct-to-consumer channels. EBITDA saw an 18% increase to ₹195 crore, with margins expanding by 40 bps to 14.2% due to a better channel mix and cost improvements. While reported PAT fell slightly by 7% to ₹26 crore due to the Code on Wages impact, adjusted PAT from continuing operations surged 65.2% to ₹44 crore. The company achieved a healthy 8.2% retail LTL growth and a significant 50% growth in its online B2C segment.
Key Highlights
Revenue grew 14.5% YoY to ₹1,377 Cr, supported by 8.2% retail LTL growth.
EBITDA increased by 18% YoY to ₹195 Cr with margins improving to 14.2%.
Adjusted PAT (excluding Code on Wages impact) grew 65.2% YoY to ₹44 Cr.
Online B2C channel delivered massive ~50% growth during the quarter.
Gross margins expanded by 50 bps to 55.4% through channel mix optimization.
💼 Action for Investors
Investors should focus on the strong operational growth and margin expansion, looking past the one-time accounting impact of the Code on Wages. The company's strategy of premiumization and direct-to-consumer expansion continues to drive value.
Arvind Fashions Q3 FY26 Revenue Grows 25% YoY to ₹1,377 Cr; PBT Rises to ₹82.5 Cr
Arvind Fashions reported a strong operational performance for Q3 FY26, with revenue from operations increasing by 24.8% YoY to ₹1,376.58 crore. Profit Before Tax (PBT) from continuing operations grew by 20.4% to ₹82.54 crore, reflecting healthy margins. However, Net Profit for the quarter declined to ₹36.38 crore from ₹47.65 crore in the previous year, primarily due to a deferred tax charge of ₹6.19 crore as the company transitioned to a new tax regime under Section 115BAA. For the nine-month period, the company maintained growth with a consolidated net profit of ₹118.12 crore.
Key Highlights
Revenue from operations increased 24.8% YoY to ₹1,376.58 crore in Q3 FY26.
Profit Before Tax (PBT) from continuing operations rose to ₹82.54 crore versus ₹68.57 crore in Q3 FY25.
9M FY26 consolidated net profit stood at ₹118.12 crore, up from ₹106.58 crore YoY.
Transitioned to a lower tax regime (Section 115BAA), resulting in a net deferred tax impact in the current quarter.
Discontinued operations (Aeropostale and Ed Hardy) had a minimal net loss impact of ₹0.27 crore during the quarter.
💼 Action for Investors
Investors should look past the technical decline in Net Profit caused by tax adjustments and focus on the robust 25% top-line growth and improving PBT. The company's strategy to exit non-core brands while scaling its primary portfolio appears to be yielding operational efficiency.
Arvind Ltd MD Susheel Kaul Resigns; Vice Chairman Punit Lalbhai to Lead Textiles Business
Arvind Limited has announced the resignation of Mr. Susheel Kaul, Managing Director and President (Textiles), citing personal reasons. As part of a structured long-term succession plan, Vice Chairman Punit Lalbhai will take over the executive leadership of the textiles and apparel business effective April 1, 2026. Mr. Kaul will continue to support the company on key strategic projects during the transition period. This move ensures leadership continuity by transitioning responsibilities to the promoter family's next generation.
Key Highlights
Mr. Susheel Kaul resigns as Managing Director & President (Textiles) due to personal reasons.
Vice Chairman Punit Lalbhai to assume executive leadership of the core textiles business from April 1, 2026.
The transition follows a long-term succession plan previously communicated in December 2025.
Mr. Kaul will remain involved in strategic growth initiatives during the interim period.
💼 Action for Investors
Investors should view this as a planned leadership transition rather than an abrupt exit. Monitor the company's operational performance during the handover period to ensure the textiles division maintains its growth trajectory under Punit Lalbhai.
Arvind Fashions to Acquire Flipkart's 31.25% Stake in Arvind Youth Brands for Rs 135 Crore
Arvind Fashions Limited (AFL) has announced the acquisition of Flipkart Group's 31.25% stake in Arvind Youth Brands Private Limited (AYBPL) for a total consideration of Rs 135 crores. Following this transaction, AYBPL, which owns the iconic 'Flying Machine' brand, will become a wholly owned subsidiary of AFL. The move consolidates AFL's ownership of a key growth brand that has successfully scaled on digital platforms over the last five years. Despite the stake buyout, AFL will continue its commercial retailing partnership with the Flipkart Group.
Key Highlights
Acquisition of 31.25% stake in Arvind Youth Brands Private Limited from Flipkart India Private Limited.
Total transaction value for the stake purchase is Rs 135 crores.
Arvind Youth Brands (AYBPL) to become a 100% wholly owned subsidiary of Arvind Fashions.
Consolidates full control over the 'Flying Machine' brand, a major player in the Indian denim market.
Strategic move to capture full value from the brand's digital-first growth trajectory.
💼 Action for Investors
Investors should view this as a positive consolidation of a core brand, giving AFL full control over the cash flows and strategic direction of Flying Machine. Monitor the company's leverage post-acquisition and the brand's performance across non-Flipkart digital channels.
Arvind Fashions to Acquire 31.25% Stake in Flying Machine Owner for INR 135 Crores
Arvind Fashions Limited (AFL) has signed a Share Purchase Agreement with Flipkart India to acquire its 31.25% stake in Arvind Youth Brands Private Limited (AYBPL). This INR 135 crore cash transaction will make AYBPL, which owns the 'Flying Machine' brand, a wholly-owned subsidiary of AFL. The move is designed to consolidate ownership for better operational efficiency and strategic control. While the brand is a key asset, its turnover has seen a slight decline from INR 472.38 crores in FY23 to INR 432.16 crores in FY25.
Key Highlights
Acquisition of 31.25% stake from Flipkart India for a total cash consideration of INR 135 Crores
Arvind Youth Brands Private Limited (AYBPL) to become a 100% wholly-owned subsidiary of Arvind Fashions
AYBPL owns the 'Flying Machine' brand and reported a turnover of INR 432.16 Crores for FY25
The transaction was completed at arm's length based on an independent valuation report dated December 24, 2025
Strategic goal is to enhance operational efficiency and gain full control over the brand's direction
💼 Action for Investors
Investors should view this as a positive consolidation of a core brand under the parent entity, which simplifies the corporate structure. Monitor whether full ownership enables the management to reverse the recent marginal decline in Flying Machine's annual turnover.
Arvind Fashions to Acquire 31.25% Stake in Flying Machine Owner for ₹135 Crores
Arvind Fashions Limited has entered into a Share Purchase Agreement with Flipkart India Private Limited to acquire its entire 31.25% stake in Arvind Youth Brands Private Limited (AYBPL) for ₹135 Crores. AYBPL, which owns the 'Flying Machine' brand, will become a wholly-owned subsidiary of the company upon completion. This move is intended to enhance operational efficiency and provide full strategic control over the brand. While AYBPL is a significant asset with a turnover of ₹432.16 Crores in FY25, investors should note a declining revenue trend from ₹472.38 Crores in FY23.
Key Highlights
Acquisition of 31.25% stake from Flipkart for a cash consideration of ₹135 Crores
Arvind Youth Brands Private Limited (AYBPL) to become a 100% wholly-owned subsidiary
AYBPL reported a turnover of ₹432.16 Crores for the financial year ended March 31, 2025
The transaction includes the acquisition of 58,95,852 Compulsory Convertible Preference Shares (CCPS)
Strategic move to gain full control over the 'Flying Machine' brand for better operational synergy
💼 Action for Investors
Investors should view this consolidation as a positive step for long-term brand control, though they should monitor the company's ability to reverse the slight downward trend in AYBPL's annual turnover.
Arvind Ltd Announces Leadership Change; Punit Lalbhai to Lead Textiles & Apparel from April 2026
Arvind Limited has announced a significant leadership transition as part of its long-term succession planning. Punit Lalbhai, the current Vice Chairman, will assume an executive role to lead the core textiles and apparel business starting April 1, 2026. Susheel Kaul, the outgoing President of the segment, will remain as Managing Director but pivot to overseeing key strategic projects and future growth initiatives. This move ensures continuity within the promoter family while retaining experienced professional leadership for strategic expansion.
Key Highlights
Punit Lalbhai to take executive charge of the textiles and apparel business effective April 1, 2026
Susheel Kaul will transition from President of the segment to focusing on strategic projects while remaining MD
The leadership change is part of a structured long-term succession plan for the conglomerate
Arvind Limited remains a top global supplier of fabric with integrated fiber-to-fashion capabilities
💼 Action for Investors
Investors should view this as a planned transition that ensures stability in the core business segment. Monitor the company's strategic project updates under Susheel Kaul's new focus area for future growth drivers.
Arvind Fashions Appoints Nitesh Kanchan as CEO of Arrow Brand
Arvind Fashions Limited has appointed Nitesh Kanchan as the Chief Executive Officer of its flagship menswear brand, Arrow, effective December 8, 2025. Kanchan brings over 20 years of experience in the fashion and retail industry, having previously served as the Chief Digital Officer for Arvind Fashions and CEO of Sephora India. His primary mandate is to lead Arrow's next growth phase by focusing on product innovation, digital commerce, and omni-channel retail expansion. This leadership transition is aimed at strengthening Arrow's core formal wear business while capturing the growing smart casual and lifestyle market segments.
Key Highlights
Nitesh Kanchan appointed as CEO of Arrow, bringing 20+ years of experience in fashion and retail.
Previously served as Chief Digital Officer at Arvind Fashions and CEO of Sephora India.
Focus will be on driving growth through digital transformation, data-led strategies, and omni-channel expansion.
Kanchan holds a B.Tech from IIT Delhi and an executive certification from IIM Bangalore.
Strategic priority includes expanding Arrow's presence in the smart casual and lifestyle categories.
💼 Action for Investors
Investors should view this as a positive step toward modernizing one of the company's core brands through digital-first leadership. Monitor Arrow's performance in upcoming quarters to see if the focus on casual wear and omni-channel retail improves brand margins.
Arvind Fashions Appoints Nitesh Kanchan as CEO of Arrow Brand Following Anand Aiyer's Resignation
Arvind Fashions Limited has announced a leadership transition for its key brand, Arrow. Mr. Anand Aiyer, the current CEO of Arrow, has resigned effective January 9, 2026, due to personal reasons. The company has appointed Mr. Nitesh Kanchan, currently the CEO of AFL Digital, to take over as CEO of Arrow starting January 1, 2026. Mr. Kanchan brings over 20 years of experience in fashion and retail, including previous roles as COO of Arrow and CEO of Sephora India.
Key Highlights
Mr. Anand Aiyer resigns as CEO of Arrow brand effective January 9, 2026.
Mr. Nitesh Kanchan redesignated from CEO - AFL Digital to CEO - Arrow effective January 1, 2026.
Nitesh Kanchan has over 20 years of experience and is an IIT Delhi and IIM Bangalore alumnus.
The new leadership will focus on accelerating growth in smart casual and lifestyle categories for the Arrow brand.
The transition includes a brief overlap period to ensure continuity in brand management.
💼 Action for Investors
Investors should view this as a routine leadership transition; the internal promotion of a seasoned executive suggests stability. Monitor the brand's performance in the smart casual segment under the new leadership.