Shoppers Stop Ltd announced its fiscal second quarter earnings with a loss of Rs 20.59 crore in comparison to a profit of Rs 2.73 crore recorded during the corresponding quarter of FY24, due to subdued demand. It posted revenue from operations at Rs 1,114.87 crore, up 7.3 per cent as against Rs 1,039.12 crore during the same period of previous financial year.
The company posted sales for the quarter at Rs 1,068 crore, +4 per cent with EBITDA at Rs 157 crore (GAAP). Shoppers Stop said that it had the first green shoot in September, with sales increasing by 12 per cent (LTL +9 per cent).
The contribution from the Premium category increased by 4 per cent, with an overall mix of 64 per cent vs 60 per cent a year ago. The Beauty category continued to outperform, with sales growth at 10 per cent, led by a fragrance +17 per cent. In other KPIs, Items Per Transaction (IPT) increased by 2 per cent, Average Transaction Value (ATV) rose by 9 per cent, and Average Selling Price (ASP) grew by 7 per cent.
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Kavindra Mishra, MD and CEO of Shoppers Stop Ltd, said, “Despite a challenging external environment, we remained resilient in our pursuit to deliver growth. Shoppers Stop delivered notable financial results though the demand was muted in July and August, impacted by fewer wedding dates, extended rains, and overall weak discretionary spending. We kept a relentless focus on investing behind our Premium Category, with increased offerings in Premium Category this quarter. We renovated and made our Malad Store (in Mumbai) as a destination for Premium offerings.”
Performance across segments
First Citizen: Shoppers Stop’s First Citizen Members contributed 81 per cent to overall sales, with 67 per cent repeat and 14 per cent new members. The Premium Black Card members contributed 14 per cent to the overall sales with an increase of +17 per cent YoY. Customer engagement activities continued with 17 events across 8 cities engaging circa 750 Black Card members.
Private Brands: Private Brands sales were at Rs 156 crore with an overall contribution of 12 per cent to the sales and 18 per cent in the apparel segment. This helped the company reduce the inventory by Rs 40 crore vs last year.
INTUNE: Shoppers Stop opened its 50th INTUNE store on October 1 2024, taking the presence to across 20 cities. “The margin realizations were better than our estimates driven by higher full price sales. We are confident of adding 22 stores in Q3 and 28 stores in Q4 this year,” it said.
Beauty: Beauty category recorded sales of Rs 218 crore, with 10 per cent growth, led by Fragrance (17 per cent).
Beauty Distribution: Global SS Beauty Brands Limited, the 100 per cent subsidiary of the company, reported Rs 52 crore sales with +130 per cent YoY.
Store Expansion: The company launched 25 stores in this quarter, including 19 INTUNE, 5 Home Stop and 1 Department. The total capex spend is Rs 43 crore and it is planning to add 50 INTUNE, 7 Department, 6 Beauty and 2 HomeStop stores during Q3 and Q4 this year.
Appointment alert
Shoppers Stop board has also approved the appointment of Nishit Sheth in interim capacity as the Company Secretary and Chief Compliance Officer of the company with effect from October 22, 2024. Nishit Sheth holds a degree in Commerce and Law and is a member of the Institute of Company Secretaries of India. With 10 years of experience in company secretarial, legal and compliance functions, he has worked across retail, hospitality and manufacturing sectors. Nishit Sheth has been associated with Shoppers Stop Limited since July 2021.
From: financialexpress
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