Mumbai-based retail company Shoppers Stop on Monday reported a 62.5% year-on-year rise in consolidated net profit to Rs 23.18 crore for Q4FY24, helped by demand in its beauty segment as well as luxury products. Net profit was ahead of Street estimates of Rs 3.5 crore for the period.
The quarter also recorded an exceptional item of Rs 1.59 crore which comprised a loss of Rs5.7 crore towards impairment and a gain of Rs4.11 crore. Net profit last year stood at Rs14.26 crore.
Revenue from operations rose 13.2% year-on-year to Rs1,046.34 crore in Q4, comparing favourably with Bloomberg consensus estimates of Rs1,010 crore for the period. The company had reported Rs923.9 crore in revenue in the year-ago period. Shares of Shoppers Stop closed 0.15% higher on the BSE on Monday ahead of its Q4 results to Rs712.55 apiece.
Kavindra Mishra, who was elevated as MD & CEO of Shoppers Stop on Monday from ED and CEO earlier, said the company remained focused on driving operational excellence. “With rising affluence, our focus on premiumisation continues. Our beauty category sustained its strong momentum in Q4,” he said.
Analysts tracking the company said an early start to the end-of-season sales as well as occasions such as Valentine’s Day drove sales in Q4, while high-income urban consumers favoured luxury makeup and fragrances for social and professional engagements, further boosting top-line growth. Shoppers Stop sells products such as Mac, Michael Kors and Bobbi Brown among other international and national brands.
Earnings before interest tax depreciation and amortisation (Ebitda) rose 7.7% year-on-year to `166.6 crore, which was below Bloomberg consensus estimates of `174 crore for the period. Ebitda in the year-ago period stood at `154.7 crore. While Ebitda margin declined 80 basis points to 15.9% in Q4 versus 16.7% reported last year. One basis point is one-hundredth of a percentage point.
The company opened seven department stores in Q4 and 15 in FY24 aggregating to 112 stores at the end of FY24. It opened three beauty stores in Q4 and 16 in FY24, aggregating to 87 beauty stores at the end of the financial year. Value format Intune opened 12 stores in Q4 and 22 in FY24.