Shoppers Stop reports drop in Q2 profit

For the second quarter, Indian department store Shoppers Stop Ltd. recorded sales of 1,025 crore rupees, up 2 percent on GAAP basis and flat on non-GAAP basis.

Gross margin dropped 50 basis points to 40.7 percent, Ebitda dropped 2.8 percent to 170 crores, profit before and after tax was 2 crore compared to 24 crore and 18 crore, respectively.

Commenting on the results, Kavindra Mishra, executive director and CEO, Shoppers Stop Ltd, said in a statement: “Shoppers Stop reported impressive financial results, despite challenging market conditions and shifting of Pujo from Q2 to Q3 this fiscal. We have witnessed a strong pick-up in the Beauty businesses and consistent performance from non-apparels”

“Net profits for the quarter were affected due to muted demand in apparels, partially offset by growth in non-apparels. As we enter the festive season, we anticipate a rebound in discretionary spend, propelling the company’s growth trajectory further in the second half,” added Mishra.

The company’s First Citizen Members contributed 77 percent of the overall sales, out of which 64 percent were repeat members and 13 percent new members. Private brands sales were at 184 crore with contribution sustaining at last year levels of 14 percent to the total sales and 21 percent on the apparel sale.

Beauty category sales were 197 crore, the fastest growing category contributed 16 percent to the overall sales with fragrance growing by 20 percent.

The company launched Intune, a value fashion store on June 2, 2023. With 100 percent in-house assortment, the store offers fashion at accessible prices. The company opened six stores till date and four during the quarter. Sales during the quarter were 8 crore.

The company’s 100 percent subsidiary Global SS Beauty Brands Limited reached brea-keven in the last quarter, with sales of 23 crore in the second quarter.

Shoppers Stop launched four department stores, three beauty stores and four Intune stores during the quarter under review and plans to to open 15 departmental stores during the current financial year.