Shoppers Stop reports Q2 loss of Rs 20.59 crores

Department store chain Shoppers Stop Ltd reported a second quarter loss of Rs 20.59 crores compared to a profit of Rs 2.73 crores in the corresponding quarter last year. Revenue from operations reached Rs 1,114.87 crores, up 7.3 percent.

The company posted sales of Rs 1,068 crores, up 4 percent in the quarter with EBITDA at Rs 157 crores. Shoppers Stop said that it witnessed the first green shoot in September, with sales increasing by 12 percent and LTL by 9 percent.

Commenting on the quarterly trading update, Kavindra Mishra, MD and CEO of Shoppers Stop Ltd, said: “Shoppers Stop delivered notable financial results though the demand was muted in July and August, impacted by fewer wedding dates, extended rains, and overall weak discretionary spending.”

The company said in a release that the beauty category reported a 10 percent increase, led by fragrance, up 17 percent with a contribution to total sales of 17 percent.

Private brands sales were at Rs 156 crores with an overall contribution of 12 percent to the sales and 18 percent in the apparel segment. Global SS Beauty Brands Limited, the company’s 100 percent subsidiary reported Rs 52 crore sales with an increase of 130 percent.

The company opened 25 new stores, 19 Intune stores, one department store and five HomeStop stores. Intune celebrated its 50th store opening during the quarter. Shoppers Stop plans to add 22 Intune stores in the third quarter and 28 stores in the fourth quarter this year.