Shoppers Stop shares slump as premiumisation fails to offset profit hit

The Indian multi-brand retailer Shoppers Stop has announced its financial results for the third quarter and nine months ended December 31, 2025. Despite a strategic shift towards high-end offerings and experiential retail, the company faced significant market pressure following the release of its latest earnings report.

Shoppers Stop’s stock experienced a significant downturn on January 21, 2026, shedding up to 12 percent in early trading on the National Stock Exchange (NSE). This sharp decline followed quarterly results that revealed a substantial hit to profitability, driven by inconsistent discretionary demand and external environmental factors.

Profitability hit by regulatory and operational costs

The Mumbai-based retailer reported a consolidated net profit of 16.12 crore rupees for the quarter, marking a steep fall of nearly 70 percent from 52.23 crore rupees in the previous year. This result was further weighed down by an exceptional loss of 17.69 crore rupees.

Consolidated revenue from operations rose marginally by 2.63 percent to 1,415.82 crore rupees. Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 11 percent YoY to 217.90 crore rupees, while operating margins narrowed to 15.40 percent, a decline of 240 basis points.

Standalone profit after tax (PAT) for the quarter stood at 14 crore rupees, impacted by a 17.50 crore rupees provision for new labor codes.

Strategic progress in premium and beauty segments

The Shoppers Stop MD and CEO, Kavindra Mishra, noted that while festive calendar shifts and pollution levels in Northern India weighed on overall sales, the company continued to advance its strategic priorities. Premium brands now account for 69 percent of total sales, recording a 6 percent increase in like-for-like (LFL) growth.

Operational highlights from the quarter include 14 percent increase in beauty segment sales to 395 crore rupees, supported by a 58 percent increase in the beauty distribution business. The First Citizen loyalty program remained a critical revenue driver, contributing 84 percent of total revenue.

Footprint expansion and new ventures

Shoppers Stop continued to broaden its retail network, opening three department stores, three Intune stores, and one HomeStop store during the quarter. A major highlight was the relaunch of the Juhu flagship in Mumbai as an experiential retail destination on January 14, 2026.

The Intune value fashion format recorded sales of 77 crore rupees, a 22 percent increase YoY. Management is taking a calibrated approach to this format’s expansion, aiming for measured growth amid a difficult consumer environment.

Looking ahead, the company plans to open 10 new points of sale in the fourth quarter, including five department stores and three Intune outlets. Mishra expressed confidence that investments in premiumisation and omnichannel capabilities will position the retailer for sustainable growth as macro conditions improve.