Shoppers Stop posts Q3 sales growth of 7 percent

For the third quarter, Shoppers Stop revenues of Rupees 1,207 crores increased by 7 percent despite muted consumer demand.

During the festive period, sales grew by 9 percent or 5 percent LTL. During the quarter, beauty business outperformed with 10 percent growth, led by fragrance up 41 percent; makeup increasing 6 percent and overall mix up by 18 percent.

The company reported a drop in GAAP EBITDA to Rupees 219 crores.

Commenting on the results, Kavindra Mishra, executive director and CEO, Shoppers Stop Ltd, said: “With considerable slowdown on the discretionary spending, we have demonstrated notable resilience in these tough conditions. Some of the outliers for Q3 are, our external brands both apparel and non-apparel have grown above average, with better yields on our KPI’s.”

Review of Shoppers Stop’s Q3 results

The company said in a release that the First Citizen members contributed 78 percent to overall sales, out of which 65 percent were repeat and 13 percent new members.

Private brands sales were at Rupees 189 crores with an overall contribution of 13 percent to the sales and 19 percent to apparel’s sales. Women’s Indian wear grew 7 percent. Kashish brand outperformed with sales growth of 18 percent, while Stop brand kidswear grew by 8 percent.

Beauty distribution business clocked Rupees 39 crores sales with distribution network expanding to over 334 doors. The company added fragrance brand Armaf and makeup brand Soda Makeup in its distribution portfolio taking total brand count to 18 consisting 10 fragrance, two makeup, three skincare and three full line brands.

Shoppers Stop expands retail presence

The company’s “fashion for all” format, Intune added four stores during the quarter and total store count at the end of the quarter reached 10 stores across six cities. The company plans to add 14 Intune stores in the fourth quarter, aggregating to 24 by the end of FY24.

Shoppers Stop opened four department stores, four beauty stores, four Intune and one airport stores in the third quarter, aggregating to 13 stores and 33 stores year to date. The company made an investment of Rupees 51 crores on expansion during the quarter.