Shoppers Stop Q3 sales and profit grow

Shoppers Stop Limited reported a sales rebound of 35 percent year-on-year to Rs 1070 crores in the third quarter, close to pre-covid levels.

The company said in a statement that EBITDA improved by 57 percent to Rs 197 crores while the gross margin grew by 170 basis points to 36 percent driven by robust demand recovery and tight control on costs.

Commenting on the company’s third quarter, Venu Nair, MD & CEO at Shoppers Stop, said: “We are witnessing positive signs from a strategy that we initiated in the last two years. As the fashion and beauty retail is seeing encouraging early trends from the Wardrobe Reboot, we are rightly poised to capture the pent-up demand. While Omnichannel is here to stay, our present online contribution gives us immense headroom to grow.”

Shoppers Stop witnesses growth among fashion and beauty segments

The company added that first citizen loyalty customers continued to demonstrate a strong growth trajectory, with offline accounting for 72 percent of sales and online 42 percent, up by 160 bps. First citizen black card customers segment saw new enrollments increase by 85 percent.

Private brand sales improved 32 percent while the margins widened by 160 basis points. The segment contributed 14 percent of the overall sales wherein apparels contributed 18 percent and online sales 17 percent. Newly launched men’s Indian wear brand - Bandeya contributed 5 percent to private brands, while youth-centric D2C brand - Infuse grew at an annual run rate of Rs 5 crores.

Beauty sales accounted for 17 percent of total sales which grew by 75 bps in the third quarter. The quarter also witnessed the launch of 28 new brands (70 brands year-to-date). Arcelia, the private brand in the beauty segment, launched 40 SKUs of perfumes, deodorants and sheet masks. Another 75 SKUs of make-up and nails will be launched in the fourth quarter of FY22. Makeup accounts for 51 percent of the beauty sales mix.

The company further said that omnichannel continued to display exceptional performance as the segment showed more than 39 percent growth due to revamped UI/UX that led to better user traction. While 130 lakh people downloaded the mobile app, better customer experience reflected in the improved app rating of 4.4 in the third quarter of FY22 compared to 3.4 in same quarter last year. The company has invested Rs 40 Crores in digital as of date.

Shoppers Stop opened five stores including three departmental stores and two dedicated to beauty. The company’s 10 stores are currently under fit-out, which are expected to open in the next quarter