Shoppers Stop Q2 net profit down 19.24 percent

Shoppers Stop second quarter net profit declined by 19.24 percent to Rs 12.84 crores. The company had posted a net profit of Rs 15.90 crores during the same period of previous fiscal. Income from operations stood at Rs 877.77 crores compared with Rs 842.40 crores in the same quarter of FY14.

The company is putting in a lot of efforts to drive its omni-channel strategy for growth and expects the strategy to drive 10 percent revenue through digital-touch points over the next 10 years. The group plans to invest about Rs 60 crores over the next three years in the initiative, while strengthening its supply chain and talent pool. Shoppers Stop also plans to establish exclusive and private brands under its portfolio, which it expects to contribute 2 to 10 percent and 15 to 25 percent sales respectively. The retail group operates large format department stores, home stores, specialty stores like Crossword, Mothercare, M.A.C, and hypermarkets under its fold.

Shoppers Stop, in the first quarter of this fiscal suffered a net loss at Rs 21.4 crores from Rs 75 lakh in corresponding quarter last fiscal. It incurred an exceptional loss of Rs 23.8 crores in Q1 due to provision for diminution in value of investment in a joint venture.