Beauty segment drives Q4 growth at Shoppers Stop

Departmental store chain Shoppers Stop’s sales for the fourth quarter reached Rs 1,000 crore, an increase of 9 percent compared to the same period in the previous year.

The company said in a release that the beauty segment outperformed with Rs 218 crores in sales, a 7 percent growth, led by fragrance, up 24 percent and overall mix up 18 percent.

Commenting on the results, Kavindra Mishra, managing director and CEO, Shoppers Stop Ltd, said: “I am happy that we have made concerted efforts to further improve and sustain our excellence in customer journey, which is evident with our loyal customers contributing 78 percent of our total sales. Our EBITDA at Rs 199 crores was impacted by one time investments in beauty and write off of inventory aggregating to Rs 14 crores during the quarter.”

Private brand sales were at Rs 145 crores with weak demand in women’s western and men’s category. However, inventory was reduced by Rs 56 crores. The company added that its beauty distribution business recorded Rs 42 crores sales during the quarter and the network expanded to over 436 doors from earlier 334 doors.

The company launched ‘Nars’ brand boutique store at Select City Mall, New Delhi. With the addition of fragrance brand ‘Maison Margiela’ and makeup brand ‘Note Cosmetics,’ total brand portfolio expanded to 20.

The company continued to expand presence in key markets including seven new department stores in the fourth quarter and 15 in FY24 aggregating to 112 departmental stores at the end of March 31, 2024.

Shoppers Stop also launched the largest premium beauty store at Quest Mall, Kolkata. The company opened three beauty stores in the fourth quarter and 16 during FY24, aggregating to 87 at the end of the fiscal year. 12 Intune stores also opened during the quarter under review, with 22 stores in FY24.