Shoppers Stop reports healthy Q3 performance

Indian department store chain Shoppers Stop registered third quarter sales of Rs 1,311 crore, up 9 percent versus the same period last year.

The company said in a statement that EBITDA for the period improved by Rs 262 crore, an increase of 20 percent, and profit after tax of Rs 49 crore increased by 37 percent on a GAAP basis.

Commenting on the third quarter results, Kavindra Mishra, MD and CEO of Shoppers Stop Ltd, said, “We ended Q3 with a fairly positive note and the growth trajectory of the business heading in the right direction. We have delivered healthy volume-led revenue growth of 9 percent and LFL growth of 4 percent, despite higher inflation and decline in consumer spending.”

“Our strategic focus is to make private brands profitable. I am extremely pleased to say that private brands generated healthy margin growth, driven by lower markdown and obsolescence. The beauty category continues to grow, where sales grew 3 percent, led by fragrance growth of 14 percent,” Mishra added.

The company recorded beauty segment sales of Rs 268 crore, up 3 percent, led by 14 percent growth in fragrance.

Shoppers Stop opened six stores during the quarter including three boutique stores of “Armani” and “First Fragrance Only” Store. The company also launched a new private brand Joylogy across 45 Shoppers Stop stores and online portals.

Global SS Beauty Brands Limited, the company’s 100 percent subsidiary continued to outperform with Rs 78 crore sales during the quarter, up 26 percent and Rs 169 crore of year-to-date sales.

Private Brands sales of Rs 186 crore, contributed 12 percent to overall sales and 18 percent in the Apparel segment.

At the end of the quarter, the company had 59 Intune stores across 25 cities. Intune generated sales of Rs 63 crore in the third quarter and year to date sales of Rs 138 crore.

The company launched 16 stores during the quarter under review, including nine Intune, six SS Beauty stores, and one department store. Shoppers Stop plans to open another 26 Intune stores and six department stores in the fourth quarter with store openings in Delhi-NCR delayed due to regulatory restrictions.