Shares of Shoppers Stop traded down 3.5 percent at Rs 736.4 at 9.17am after the company’s June quarter net profit fell 34 percent over last year to Rs 14.9 crore. The stock has gained 7.19 percent since January 1, 2023.
The company reported a 4 percent growth in revenue at Rs 988 crore in the April-to-June quarter over the same period last year. Its earnings before interest, tax, depreciation and amortisation (EBITDA) grew 7 percent to Rs 180 crore on-year in the same period.
Apparel demand continues to be muted post the previous festive season, however partial revival is witnessed from mid-June onwards, said ICICI Securities
The retailer's Indian apparel category outperformed other categories with the ‘Haute Curry’ brand growing 42 percent and ‘Kashish’ 14 percent. Shoppers Stop’s smart casual wear for men category grew 39 percent.
Shoppers Stop’s beauty segment grew 14 percent on-year to Rs 216 crore. It contributed 16.4 percent to the company’s total revenue.
“The 3P customer-centric strategy about personalisation, premiumisation, and private label has resulted in increased average transaction value and average selling price by 8 percent and 5 percent, respectively,” said Venu Nair, Managing Director and Chief Executive Officer at Shoppers Stop.
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Shoppers Stop opened six beauty stores, five department stores, and one HomeStop store during the quarter. The company’s total store footprint as of June 30 stands at 218.
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