India’s oldest department store chain, Shoppers Stop, on Wednesday narrowed its net loss for the June quarter (Q1FY27) as demand for beauty and premium apparels remained firm, led by the wedding season.
The company reported a consolidated net loss of Rs 14.3 crore for the June quarter, compared with a net loss of Rs 15.7 crore in the corresponding period last year, reflecting a modest improvement in profitability.
Revenue from operations rose 11.2% year-on-year to Rs 1,291 crore in Q1, up from Rs 1,161 crore in Q1FY26, driven by steady demand across its retail business. Analysts said that retail demand stayed resilient despite the Iran war, with department store chains continuing expansion. The company opened eight stores in Q1 including two department stores and four beauty outlets, bringing its total to 288.
“Demand has sustained through the first quarter, and better supply-chain visibility gives us confidence ahead of the festive season,” Shoppers Stop Managing Director and CEO Kavindra Mishra said.
At the operating level, earnings before interest, tax, depreciation and amortisation (Ebitda) increased 9.2% year-on-year to Rs 187 crore, compared with Rs 172 crore in the year-ago period. However, Ebitda margins slipped to 14.5% from 14.8%, pointing to an increase in operating costs despite higher sales. The company’s total expenses rose 10.4% year-on-year to Rs 1,316 crore in the quarter.
Premiumisation
During the quarter, Shoppers Stop continued to focus on its premiumisation strategy, beauty business and value fashion format Intune, which have emerged as key growth drivers. Beauty sales rose 15% year-on-year to Rs 327 crore, led by a 34% jump in fragrances. The department store business reported sales of Rs 1,242 crore, with like-for-like (LFL) growth of 6% during the quarter.
Beauty distribution business reported its highest-ever quarterly sales at Rs 129 crore, rising 53% year-on-year in Q1. The company’s value fashion format Intune reported sales of Rs 82 crore, up 21% year-on-year, with LFL growth of 10% in the said quarter.
Shoppers Stop’s premium portfolio contributed 72% of sales, with topline growth of 15% and LFL growth of 13% during the quarter.
Operational Efficiency
The company reduced inventory by Rs 80 crore year-on-year, including a reduction of Rs 34 crore in Intune inventory. Private brands delivered steady performance, with average selling price (ASP) growth of 20% driven by portfolio premiumisation.
Shoppers Stop also reduced debt by Rs 93 crore during the quarter. It received a Rs 50 crore capital infusion in Global SS Beauty Brands, the beauty retail arm of the company, on a year-on-year basis.
