Shoppers Stop Ltd on Tuesday announced its fiscal third quarter earnings report with profit at Rs 52.23 crore, posting a growth of 41.74 per cent in comparison to Rs 36.85 crore during the same period last year. The company posted a quarterly profit growth after two quarters of loss. It said that the growth was driven by strong demand for premium products during the festive season. Shoppers Stop reported Q3 revenue from operations at Rs 1,379.47 crore, up 11.47 per cent on-year. The company had posted a revenue of Rs 1,237.52 crore during the third quarter of FY24. Shoppers Stop reported EBITDA at Rs 245.7 crore, up 13 per cent YoY and EBITDA margin came in at 17.8 per cent.
Kavindra Mishra, MD and CEO, Shoppers Stop Ltd, said, “We ended Q3 with a fairly positive note and the growth trajectory of the business heading in the right direction. We have delivered healthy volume-led revenue growth of 9 per cent and LFL growth of 4 per cent, despite higher inflation and decline in consumer spending.
The company’s premium categories contributed to 64 per cent of its total revenue, and it continued to improve at over 9 per cent YoY and +5 per cent on Like-for-like (LFL) basis. Kavindra Mishra said, “We had taken a number of initiatives during the quarter such as “India Weds with Shoppers Stop”, “Gifts of Love”, “Winter Magic Campaign” and “ShowStoppers”, “Singles Day” in Beauty, etc. These initiatives led to an increase in premiumization, and our premium categories contributed 64 per cent of our total revenue. We have improved every KPI’s during the quarter. Our strategic focus is to make Private Brands profitable. I am extremely pleased to say that Private Brands generated healthy margin growth, driven by lower markdown and obsolescence. The Beauty category continues to grow, sales grew +3 per cent, led by a Fragrance +14 per cent. Our flagship store at Inorbit Malad, Mumbai, has been fully renovated and is now operational, featuring premium product offerings and enhanced customer experiences.”
Q3 performance
First Citizen: First Citizen Members contributed 83 per cent to the company’s sales, of which 69 per cent were repeat and the balance 14 per cent were new members. “Our Premium Black Card members contributed 17 per cent to our sales with an increase of +28 per cent YoY. This is the highest contribution since we launched Black Card, a few years back,” it said.
Beauty: Beauty segment reported sales of Rs 268 crore, up 3 per cent YoY, led by Fragrance. The company opened 6 stores during the quarter including 3 boutique stores of “Armani” and “First Fragrance Only” Store. It also launched a new private brand “JOYOLOGY” across 45+ Shoppers Stop stores and e-com portals.
Beauty Distribution: Global SS Beauty Brands Limited, the company’s 100 per cent subsidiary, continued to outperform with Rs 78 crore sales during the quarter with +26 per cent YoY growth and Rs 169 crore YTD, demonstrating an improving quarterly trend.
Private Brands: Private brands sales came in at Rs 186 crore, contributing 12 per cent to overall sales and 18 per cent in the apparel segment. Overall margin improved with higher intake margin and optimized markdowns.
INTUNE: As at Q3 end, the company had launched 59 Intune stores across 25 cities. Intune generated sales of Rs 63 crore in Q3. “We are planning to open another 26 stores in Q4. Store openings in Delhi-NCR were delayed due to regulatory restrictions,” it said.
Store Expansion: The company launched 16 stores in this quarter, including 9 INTUNE, 6 SS Beauty stores, and 1 Department Store. The total capex spend was Rs 53 crore.
Going forward, Shoppers Stop said, premiumisation will continue to lead growth for Q4 and FY26. Besides, a strong wedding calendar from mid January will continue to drive growth momentum. Shoppers Stop said that in the months to come, demand trends will stabilise leading to better sales and growth.