Bata posts Tk 10 crore Q2 loss as store vandalism hits sales

Bata Shoe, one of Bangladesh's leading footwear manufacturers, reported a loss of approximately Tk 10 crore for the April-June quarter of the current year, as sales declined sharply following the widespread disruption and damage to several of its retail outlets, the company has said.

The listed multinational shoe producer's sales plummeted by 39 percent to Tk 158 crore in the quarter, according to its half-yearly financial reports published today.

The company had logged profits of Tk 19 crore in the same quarter last year.

"Several retail locations were affected by acts of vandalism, which disrupted operations and had a material impact on financial performance," said the company regarding the quarterly loss.

In mid-April, several retail stores of Bata Shoe were vandalised in the country while countrywide protest programmes in solidarity with the global strike for Palestine were held.

The company, however, said it remained focused on recovery and customer engagement. Net operating cash flow per share was high due to better working capital management.

"We were especially encouraged by the renewed wave of support and strong consumer traction seen during the Eid-ul-Azha season," said Debabrata Mukherjee, managing director of Bata Bangladesh.

"It reaffirmed our longstanding relationship with customers and business partners, a relationship built on trust, resilience, and shared history," he added.

In a press release, the company said the first half of the year presented a mix of strong commercial momentum and unforeseen operational challenges.

In the first half of 2025, Bata Shoe's profits dropped by 10 percent to Tk 27 crore.

The year began on a positive note, with the Eid season coinciding with the first quarter, Bata Bangladesh said, adding that it successfully leveraged this opportunity through an integrated marketing campaign and the introduction of a new product range that was well received by consumers.

Looking ahead, the company plans to continue to focus on customer experience, innovation, and responsible growth.

Bata is a leading global footwear company, selling over 150 million pairs annually. Founded in 1894 in the Czech Republic, it has a network of over 6,000 stores. In Bangladesh, Bata has been present since 1962 under the name Bata Shoe Company, with over 362 stores and thousands of distribution points.