Shoppers Stop Q2 Registers Sales Of Rs 1068 Crore +4%, EBITDA Rs 157 Crore

* H1FY25 Sales of Rs 2102 Cr +5%, EBITDA Rs 302 Cr (GAAP)

 Beauty outperformed +10%, led by Fragrance +17% contribution to total sales 17%

Expansion on Track; 25 New Stores, 19 INTUNE, 1 Department and 5 HomeStop Stores; INTUNE reaches Milestone of 50 Stores on October 1, 2024

First Citizen Club 10.9M contributing 81% with repeat Sales 67%

Personal Shoppers +9%, Total strength 434

Premium categories contribution continues to improve, YoY 64% Vs 60%

Capex Investments @ Rs.43 Cr

Shoppers Stop Ltd. a leading department store with premier fashion and beauty brands, has declared its results for the quarter ended 30th September 2024.

Management Comments:

Commenting on the Q2 FY25 results, Mr. Kavindra Mishra, MD and CEO of Shoppers Stop Ltd, stated, “Despite a challenging external environment, we remained resilient in our pursuit to deliver growth.  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. We kept a relentless focus on investing behind our Premium Category, with increased offerings in Premium Category this quarter. We renovated and made our Malad Store (in Mumbai) as a destination for Premium offerings.

Sales for the quarter were at Rs 1,068 Cr, +4% with EBITDA at Rs 157 Cr (GAAP). We had the first green shoot in September, with sales increasing by 12% (LTL +9%). The contribution from Premium Category increased by 4%, with an overall mix of 64% vs 60% a year ago. The Beauty category continue to outperform, Sales grew 10%, led by a fragrance +17%

In other KPIs, Items Per Transaction (IPT) increased by 2%, Average Transaction Value (ATV) rose by 9%, and Average Selling Price (ASP) grew by 7%.

Additionally, the Value Fashion Format “INTUNE” celebrated its 50th store opening during the quarter.

Performance of strategic pillars in Q2FY25:

First Citizen – Our First Citizen Members contributed 81% to overall sales, with 67% repeat and 14% new members. Our Premium Black Card members contributed 14% to the overall sales with an increase of +17% YoY. Customer engagement activities continued with 17 events across 8 Cities engaging circa 750 Black Card members. The Meet & Greet session with Bollywood actress Tripti Dimri at SSBeauty, Ambience Mall, Gurgaon had good traction.

Private Brands – Private Brands sales were at Rs 156 Cr with an overall contribution of 12% to the Sales and 18% in Apparel segment. This helped us to reduce the Inventory by Rs 40 Crs vs last year

INTUNE –We opened our 50th Store on October 1 2024 and with this we have our presence across 20 cities. The margin realizations were better than our estimates driven by higher Full Price Sales. We are confident of adding 22 stores in Q3 and 28 stores in Q4 this year.

Beauty – Beauty had Sales of Rs 218 Cr, with 10% growth, led by Fragrance 17%. Our customer engagement activities led the growth with 188,000 makeovers, 245 Master Classes and 6 beauty Soiree events.

Beauty Distribution – Global SS Beauty Brands Limited, our 100% subsidiary reported Rs 52 Cr sales with +130% YoY.

Store Expansion – We launched 25 stores in this quarter, including 19 INTUNE, 5 Home Stop and 1 Department. The total capex spend is Rs 43 Crs. We are planning to add 50 INTUNE, 7 Department, 6 Beauty and 2 HomeStop stores during Q3 and Q4 this year.

Note:

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 consolidated financial statements prepared in accordance with GAAP.