Shoppers Stop is sharpening its premium retail strategy, expanding exclusive global brand partnerships and maintaining tight control over inventory as it targets becoming debt-free by the end of FY27, the company said in its post-results earnings call on Thursday.
Addressing investors, Shoppers Stop MD & CEO Kavindra Mishra said improving demand trends and easing supply chain conditions had supported sales growth in Q1. He cautioned that a split in the festive season period between Q2 and Q3 could slow down sales growth in the September quarter. Stability on the global geopolitical front apart from progress of the monsoons was also vital for retail demand consistency in the coming months.
“Rural demand faces monsoon headwinds, while urban demand remains resilient,” he said. “Premiumisation and personalisation are now essential growth drivers, with consumption growth extending beyond metros. Smaller cities are spending more per household,”Mishra said.
Financial Performance
The retailer, which is the country’s oldest department store chain, narrowed its net loss for the June quarter (Q1FY27) as demand for beauty and premium apparels remained firm. Revenue from operations rose 11.2% year-on-year to Rs 1,291 crore in Q1. Earnings before interest, tax, depreciation and amortisation (Ebitda) increased 9.2% year-on-year to Rs 187 crore, even as Ebitda margins slipped to 14.5% from 14.8% last year. At the end of the June quarter, Shoppers Stop’ gross debt stood at Rs 166 crore, down by Rs 94 crore versus the same period last year.
The retailer plans to launch two exclusive Swiss watch brands in India during the second quarter (Q2), with average price points between Rs 1 lakh and Rs 1.5 lakh.
Beauty Outperformance
Beauty continues to be among the fastest-growing segments for the retailer. Quarterly beauty sales rose 15% to Rs 327 crore, led by a 34% surge in fragrances. Management said the company’s non-Shiseido beauty portfolio was growing in double digits, while the Shiseido business had returned to like-for-like growth after rationalising underperforming stores.
Mishra also highlighted progress at value-fashion chain Intune, where revenue increased 21% year-on-year and like-for-like growth stood at 10% in Q1. While the company had deferred aggressive expansion under InTune until store economics improve further, future store additions would depend on achieving targeted sales productivity, Mishra said. The company opened eight stores in Q1 including two department stores and four beauty outlets, bringing its total to 288. Internal cash generation would fully fund the retailer’s expansion plans, including opening nine to ten department stores annually and investments into its beauty distribution business.
