Shopper Stop Q3 results show investment of Rs 51 crore on expansion

Leading retail chain Shoppers Stop has declared its results for the quarter ended 31^st December 2023, which shows among other things, a +7% YoY growth in quarterly sales at Rs 1,207 Cr, 

EBITDA of Rs.219 Cr (GAAP) and that beauty outperformed +10%, led by Fragrance +41%; make up +6%; and the overall Mix at 18%. 

Highlights 

• Beauty outperformed +10%, led by Fragrance +41%; Make up +6%; Overall Mix at 18%
• Private Brands Mix at 13% and apparels Mix at 19%; 
• Women’s Indian wear outperformed +7%
• Premiumization on rise
• Added 13 stores during the quarter; 4 Department, 4 Beauty, 4 Intune and 1 Airport 
• Capex Investments @ Rs.51 Cr for Q3 and YTD Rs162 Cr

Commenting on the Q3FY24 results, Kavindra Mishra, Executive Director and CEO, Shoppers Stop Ltd, said, “With considerable slowdown on the discretionary spending, we have demonstrated notable resilience in these tough conditions. Our Company has delivered admirable financial results with a sales growth of 7% despite muted consumer demand. And during the festive period, the sales grew by 9% (LTL +5%). Average Transaction value grew by 6% driven by premiumization and Items per Ticket grew by +5%. Some of the outliers for Q3 are, our external Brands both apparel and non-apparel have grown above average, with better yields on our KPI’s. Our Home Stop has turned around and had an impressive growth of 10%, with a sale of Rs. 42 Crs. We reported a GAAP EBITDA of Rs.219 Crs vs Rs.240 Crs in FY23. Our EBITDA has been lower due to one-time Income of Rs.17 Crs as other Income in FY23 and we have made provision for obsolescence of circa Rs.9 Crs during the quarter.“

The company also shared the performance of strategic pillars in Q3FY24. Here are some excerpts from it: 

Beauty – Beauty grew by +10%, outperforming other segments in the retail with an overall sale of Rs.262 Crs.  Beauty Contribution to overall sales increased to 18%. The company says it has been building Beauty Eco Systems through customer engagements and in store experiences. This has further strengthened by 266,000 Makeovers and 138 Master Classes covering “Bridal makeup and Party Glam Look” this quarter.  During the quarter, SS opened State of the Art Beauty Store sprawling 3000 sq ft at the prestigious T2 Bengaluru Airport. 

Intune –The company also says its “Fashion for all” format, Intune has been one of the promising and fast-growing segment. It has added 4 stores during the quarter and total store count is 10 across 6 cities. Akin to previous quarters, the company had a Full price sell thru of 65%. The format received strong acceptance for Family shopping with Kidswear Mix at 27%. It says it is planning to add 14 Intune stores in Q4FY24, aggregating to 24 by FY24 end.

Beauty Distribution – Beauty distribution business clocked Rs 39 Cr sales with distribution network expanded to over 334 doors. The company added Fragrance brand Armaf and Makeup brand Soda Makeup in its distribution portfolio taking total brand count to 18 consisting 10 Fragrance, 2 Makeup, 3 Skincare and 3 Full line brands.

Store Expansion – The company says it is on course to meet the guided store expansion for FY24, having opened 4 department stores, 4 beauty stores, 4 Intune and 1 Airport stores in this quarter, aggregating to 13 stores this quarter and 33 stores year to date. The company made an investment of Rs 51 crore on expansion during the quarter.