Tuesday, January 24, 2023

Shoppers Stop Reports Revenue Rs 1430 Crs, Up 20% YoY Non-GAAP EBITDA Rs 128 Cr Up 27% YoY In Q3FY23

·         Reports highest ever PBT at Rs.91 Cr in Q3 FY23, up 44% YoY; PAT at Rs 68 Cr, up 45% YoY

·         Continues to be debt free, post Investment in Capex of Rs 125 Cr /need based Working Capital of Rs.85 Crs.

·         Brands premiumization across categories results in strong ASP growth of 23%

·         Launches six new department stores and five beauty stores

Shoppers Stop Ltd. one of India’s leading premier retailers of fashion and beauty brands, has     declared its results for the quarter ended December 31, 2022, for the fiscal year 2022-23.

Key financial highlights for Q3 FY23:

·         Revenue at Rs 1430 Cr, up 20% YoY

·         EBITDA grew 27% YoY to Rs 128 Crs

·         PBT grew up by 44% YoY to Rs 91 Crs

·         PAT Rs 68 Crs vs Rs 47 Cr in Q3FY22

·         Debt free with a surplus cash of Rs 42 Crs

Mr. Venu Nair, MD and CEO at Shoppers Stop, commented on the Q3FY23 results, "The growth momentum continued from the second quarter, tapering down a little after Diwali. Customer sentiments remain largely buoyant due to the prolonged festive and wedding season demand. The company’s strategy to give a great buying experience to the customers is fueling footfalls at our physical stores, and eyeballs online. The revamped look and feel of the stores, and diversified product SKUs have made Shoppers Stop the preferred choice of customers.

We clocked the highest ever quarterly Sales, Gross Margin, EBITDA and PBT. Product premiumization across private brand categories has resulted in the highest quarterly sales with a growth of 23%. The beauty category was strong and reported their highest quarterly sales with a growth of 18% The company’s fund allocation strategy has kept us debt free, and we have a net surplus cash of Rs 42 Cr in our books.

Our store expansion plan is on track as we opened six department and five beauty Stores. Five more department stores are under fit out. By the fiscal year end, we plan to open a further 5 Department stores and 4 Beauty Stores in 7 cities, taking the overall store count to 280 stores in 54 cities.”

Continued robust performance from strategic pillars:

First Citizen Loyalty Customers – Continue to choose as preferred brand of choice for their fashion, lifestyle and beauty needs. Our First Citizen Members contributed 77% of our offline sales and 38% of online sales. Our engagement continues to remain focused with multiple activities during the quarter.

·         Private Brands – Private Brands category grew 23% YoY with “STOP” being the highest Apparel grossing brand.

“Fratini” grew by 48%. Men's Indian wear brand “Bandeya” grew up by 62%

·         Beauty – Beauty category was up 18% YoY and reported sales of Rs 232 Cr. “Block Friday” and “Singles Day” campaign gathered a strong response, driving the sales up by 85% during the campaign. Over 112,000 makeovers done during the quarter, created strong customer resulting in Rs.30 Crs additional sales in Beauty. In our Private Brand, “Arcelia” we launched 80 new SKUs. The total SKU count under the beauty segment has now reached 400 and above. The company intends to launch 19 SKUs of make-up, bath and body, and fragrance in the near term.

·         Store Expansion – The Company opened 6 Department and 5 Beauty stores in Q3, taking the total store count to 271, spread across 50 cities across India. With the addition of these stores, the company has now over 3.9 M sq. ft. of store presence across the length and breadth of the country. The company intends to add 5 Department and 4 Beauty stores by the end of fiscal 2022-23.

·         Omni – Our sale has been consistent; our share of Beauty and Private Brand are higher. The customer journey doesn’t just begin and end in our store, due to the variety of options present both online and in store. We are positioned to be great Omni Channel store, with significant depth and a huge role in influencing consumers to walk in through the door, as customers typically switch between online search and offline when researching the products to buy. With this in mind, we have been investing in online the best way to integrate the two to drive growth.

We have published a detailed Non-GAAP and GAAP Income Statement. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our financial statements prepared in accordance with GAAP.

About Shoppers Stop Limited: Shoppers Stop Ltd. is the nation's leading premier retailer of fashion and

beauty brands established in 1991. Spread across 96 department stores, the Company also operates 8 premium home concept stores, 142 Specialty Beauty stores of M.A.C, Estée Lauder, Bobbi Brown, Clinique, Jo Malone, Too Faced, SS Beauty and 25 Airport doors, occupying area of 3.9 M sq. ft. Shoppers Stop is home to one of the country's longest running and most coveted loyalty program 'First Citizen'. The Company's one-of-a-kind shopping assistance service, 'Personal Shopper' is revolutionizing the way Indian’s shop, bringing more value, comfort, and convenience to customer experiences. The brand's diversified Omni channel offering spans over 800+ recognized and trusted brands across an incomparable range of products that together serve our overarching objective of delivering customer delight.

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