{"id":9378,"date":"2025-05-30T16:24:51","date_gmt":"2025-05-30T11:24:51","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=9378"},"modified":"2025-05-30T16:24:54","modified_gmt":"2025-05-30T11:24:54","slug":"new-stores-strong-margins-loyal-customers-why-image-pakistan-is-on-the-investor-radar","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/new-stores-strong-margins-loyal-customers-why-image-pakistan-is-on-the-investor-radar\/","title":{"rendered":"New Stores, Strong Margins, Loyal Customers: Why IMAGE Pakistan Is on the Investor Radar?"},"content":{"rendered":"\n

Image Pakistan Ltd. (IMAGE<\/a>)<\/strong> is stitching together a strong growth narrative in the retail fashion space, underpinned by strategic investments, rising demand, and a deeply loyal customer base. In its recent corporate briefing hosted by Topline Securities, IMAGE\u2019s management laid out a focused vision for the future\u2014and it\u2019s one that investors and fashion market watchers should take note of.<\/p>\n\n\n\n

Investing in growth: new machines and store expansion<\/h2>\n\n\n\n

During 9MFY25, IMAGE incurred Rs193 million in capital expenditures<\/strong>, and plans are in place to spend an additional Rs250 million<\/strong> on multi-head embroidery machines and Rs150 million<\/strong> on store expansions over the next nine months.<\/p>\n\n\n\n

The embroidery segment is already at 100% utilization<\/strong>, prompting the company to outsource production to meet current demand. The arrival of 20 new multi-head embroidery machines<\/strong> is set to ease this bottleneck, meet in-house demand, and expand production capacity<\/strong> to support future growth.<\/p>\n\n\n\n

Financing is being managed smartly. The machinery import bill will be covered through fixed asset financing from banks<\/strong>, while other associated costs and capacity-related investments will be handled internally.<\/p>\n\n\n\n

Physical retail footprint is growing<\/h2>\n\n\n\n

IMAGE is actively expanding its retail footprint. The company currently operates 14 stores<\/strong>, with four more outlets in the pipeline<\/strong>\u2014three new stores and one expansion. Notable upcoming locations include:<\/p>\n\n\n\n

    \n
  • Expanded Zamzama flagship store (Karachi)<\/li>\n\n\n\n
  • Bukhari Commercial (Karachi)<\/li>\n\n\n\n
  • F-6 Markaz (Islamabad)<\/li>\n\n\n\n
  • Giga Mall (Rawalpindi)<\/li>\n<\/ul>\n\n\n\n

    With these additions, IMAGE is expected to operate 17 physical stores<\/strong> by the end of CY25, complementing a strong global online presence<\/strong>.<\/p>\n\n\n\n

    Online and offline sales momentum<\/h2>\n\n\n\n

    In 9MFY25, e-commerce contributed 24% of total sales (Rs788 million)<\/strong>, while physical retail accounted for 76% (Rs2,542 million)<\/strong>. This split highlights IMAGE\u2019s omnichannel strength<\/strong>, which allows the brand to serve a broader, digitally connected customer base while leveraging brick-and-mortar reach.<\/p>\n\n\n\n

    Gross margins and sales outlook<\/h2>\n\n\n\n

    Gross margins saw a seasonal dip from 55% in 2QFY25 to 45% in 3QFY25<\/strong>, attributed to a mix of product lines and quarter-specific costs. However, with the Spring\/Summer season<\/strong> and Eid<\/strong> falling in 4Q, the company anticipates a strong recovery in revenue and margins by year-end.<\/p>\n\n\n\n

    Looking ahead, IMAGE expects to achieve Rs4.5 billion in sales in FY25<\/strong>, closing in on its Rs5 billion target<\/strong>, and is eyeing 25% year-over-year growth in FY26<\/strong>.<\/p>\n\n\n\n

    Customer loyalty and operational efficiency<\/h2>\n\n\n\n

    A standout metric from the briefing is IMAGE\u2019s 90% customer return rate<\/strong>\u2014a rare achievement in retail that reflects deep brand trust and strong product-market fit.<\/p>\n\n\n\n

    On the tax front, IMAGE benefits from a favorable structure:<\/p>\n\n\n\n

      \n
    • Image Tech is tax-exempt<\/strong>, reducing the group\u2019s consolidated effective tax rate<\/li>\n\n\n\n
    • Accelerated depreciation and Section 65B exemptions<\/strong> have further supported margins in previous years<\/li>\n<\/ul>\n\n\n\n

      Diversification into perfumes<\/h2>\n\n\n\n

      While perfume production<\/strong> is still in early development due to high capital requirements, management remains optimistic. Leveraging its brand equity and loyal customer base, IMAGE sees this as a long-term opportunity<\/strong> that could complement its core apparel line in the years to come.<\/p>\n\n\n\n

      Conclusion: a tailored strategy for sustainable growth<\/h2>\n\n\n\n

      From aggressive store expansion and equipment upgrades to a robust online channel and high customer retention, IMAGE is positioning itself as a growth-centric brand<\/strong> with a focus on execution. With a near-term sales target of Rs4.5 billion and strategic plans in place, IMAGE appears well-equipped to scale while maintaining its premium appeal<\/strong>.<\/p>\n\n\n\n

      Source: Topline Securities (Private) Limited<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

      Image Pakistan Ltd. (IMAGE) is stitching together a strong growth narrative in the retail fashion space, underpinned by strategic investments, rising demand, and a deeply loyal customer base. In its recent corporate briefing hosted by Topline Securities, IMAGE\u2019s management laid out a focused vision for the future\u2014and it\u2019s one that investors and fashion market watchers should take note of.<\/p>\n","protected":false},"author":9252,"featured_media":6789,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[154,155],"tags":[122],"class_list":["post-9378","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-fundamental-analysis","tag-image"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/IMAGE-STOCK-PSX-1140x445.png",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/IMAGE-STOCK-PSX-463x348.png",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/IMAGE-STOCK-PSX-300x188.png",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/IMAGE-STOCK-PSX.png",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/9378","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/9252"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=9378"}],"version-history":[{"count":2,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/9378\/revisions"}],"predecessor-version":[{"id":9449,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/9378\/revisions\/9449"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/6789"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=9378"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=9378"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=9378"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}