Shoppers Stop hits record high after turnaround in Q3 PAT to Rs50cr

21 Jan 2022 , 09:20 AM

Shopper Stop Limited’s business recovery continued in the December 31 ended quarter of 2021 with the easing of mobility restrictions and consumers returning to stores. Strong sales rebound and revenue improves by 35% yoy to Rs1070cr in Q3FY22 from Rs794cr in Q3FY21, close to pre-covid levels.

The company posted a standalone profit after tax (PAT) of Rs50cr in Q3FY22 compared to a net loss of Rs21cr in Q3FY21. Earnings before interest, tax, depreciation, and amortization (EBITDA), up by 57% to Rs197cr, while the gross margin grows by 170 basis points to 36%. EBITDA performance was driven by robust demand recovery and tight control on costs.

The company stock was in demand on Friday during early deals. At around 9.24 AM, Shoppers Stop Ltd was trading at Rs404.80 per share up by Rs43.35 or 11.99% from its previous closing of Rs361.45 per share on the BSE. The scrip opened at Rs390.70 and has touched a fresh 52-week high of Rs420 per share early on Friday.
Other highlights

• Private Brands revenue grows by 32% yoy
• Beauty Segment revenue up by 40% yoy
• First Citizen sales contribution from the offline channel at 72% and online at 42%
• Personal Shoppers contribution at 10%
• E-commerce sales continues to grow rapidly, up by 39%
• Investments continue for new stores and renovations with a capex of Rs.55 crores
• Operating expenditure of Rs40cr for Omnichannel
• 5 new stores opened

Venu Nair, MD & CEO at Shoppers Stop, said, “We are witnessing positive signs from a strategy that we initiated in the last 2 years. As the fashion and beauty retail is seeing encouraging early trends from the Wardrobe Reboot, we are rightly poised to capture the pent-up demand. Customer sentiments are extremely positive owing to the double vaccination, lesser restrictions and an overall improvement in safety protocols, leading to increased customer footfalls for us.”

“The Company has seen a sustained demand during the festive period and the marriage season in October and November. We have witnessed a high customer spend and a higher Average Transaction Value (ATV). While Omnichannel is here to stay, our present online contribution gives us immense headroom to grow,” he added.