The Bengaluru-based company's consolidated net loss widened to 164.3 million rupees ($1.98 million) for the three-month period ended June 30, from a loss of 5.1 million rupees a year earlier.

Shares of Arvind Fashions dropped nearly 7% after the results.

The retail company, which has a portfolio of owned and licenced renowned brands such as Sephora, Arrow, and Tommy Hilfiger, said its revenue from operations rose 4% to 9.57 billion rupees.

There was a slowdown in the online channel and consumption demand, the company said in a statement, but forecast that trends will improve gradually by the next festive season.

Revenue from the company's power brands such as US Polo and Tommy Hilfiger, which account for nearly 80% of overall revenue, rose 2%. Its emerging brands, which include Calvin Klein and Sephora, posted a 15% increase in quarterly revenue.

The footwear and kidswear segments witnessed year-on-year growth of 30% and 12%, respectively.

Rivals Tata Group-owned Trent Ltd, which operates retail chain Westside, beat first-quarter revenue estimates due to higher footfalls and store expansion, while Shoppers Stop Ltd reported a 34% slump in its first-quarter profit as heavy discounts and investments to ramp up the business weighed.

($1 = 82.8200 Indian rupees)

(Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by Sherry Jacob-Phillips)