Shoppers Stop Q4 FY22 net loss reduces to Rs 16 cr

29 Apr 2022 , 12:42 PM

Consolidated net sales rose 4.8% to Rs 713.34 crore in Q4 March 2022 over Rs 680.46 crore in Q4 March 2021. Pre-tax loss stood at Rs 47.90 crore in Q4 March 2022 as against a pre-tax loss of Rs 24.24 crore in Q4 March 2021.

The total expenses increased by 7.36% to Rs 782.63 crore in Q4 March 2022 as compared to Rs 728.94 crore in Q4 March 2021. On a yearly basis, the company reported a consolidated net loss of Rs 47 crore in FY22 as compared to a net loss of Rs 267.16 crore in FY21. Net sales surged 44.01% to Rs 2,518.75 crore in FY 2022 over Rs 1,748.96 crore in FY 2021.

On a segmental basis, Shoppers Stops Private Brands revenue grew 9% year-on-year, beauty segment revenue up by 9% year-on-year and e-commerce sales continued to grow up by 5% year-on-year. Post the Omicron wave in January 2022, Shoppers Stop saw a sharp recovery in footfalls. March revenue grew 40% over FY21. The momentum peaked in April with a double-digit growth over the pre-covid period.

The Average Selling Price (ASP) improved by 17% year-on-year while the Average Transaction Value (ATV) by 17% year-on-year in Q4 FY22, primarily due to premiumization pre-tax loss before one-off of Rs 26 crpre as against Rs 28 crore in Q4 FY21 and after one-offs, Rs 47 crore. The net debt stood at near zero levels, despite COVID-19 impacting January 2022.

EBITDA (GAAP adjusted) dropped 17% to Rs 97 crore in Q4 March 2022 over Rs 116 crore in Q4 March 2021. The gross margin rose 4% to Rs 285 crore in Q4 March 2022 over Rs 275 crore in Q4 March 2021.

Shoppers Stop spent a capex of Rs 46 crore in Q4 FY22, opening 19 stores (5 on departmental and 14 on beauty/ airport) during the Q4 FY22 while 24 stores opened during the year (8 departmental and 16 beauty/ airport). The company plans to add another 27 stores in FY23 (12 departmental and 15 beauty/ airport) while 6 stores are currently under fit-out and are expected to open in the Q1 FY23. 3 stores were renovated during Q4 FY22 and 9 stores, during the year. The firm plans to renovate another 8 department stores in FY23.

As on March 2022, including new stores opened and renovations done in last three years, 40% of our department stores are with new identity. This will be close to 54% for FY23. Shoppers Stop incurred an operating expenditure of Rs 13 crore for Omnichannel.

Venu Nair, the managing director (MD) and chief executive officer (CEO) of Shoppers Stop, said, The company ended the quarter on a satisfactory note despite Q4FY22 getting disrupted due to the partial lockdowns caused by the Omicron wave in January. The underlying demand continued to be strong across all businesses with most segments posting a Y-o-Y growth over a very strong Q4 FY21 base. The network expansion and campaigns have continued to progress well in anticipation of an upbeat FY23 – expected to be a normal year after a gap of two years of lockdowns.?

For its outlook, Shoppers Stop stated that, ?the apparel segment, the recent months have been strong and encouraging compared to the last 2-3 years and we are optimist that this growth is highly sustainable. While January had concerns around the Omicron variant, we believe that consumers will continue to spend as normalcy returns along with ensuing wedding season that would help stabilise the demand further. We believe that the robustness in the consumer demand has offset rising costs, driving the margins higher. We expect to grow in line with the retail industry at a double-digit pace, this fiscal.?

Shares of Shoppers Stop skids 6.54% to Rs 505.40 on BSE. Shoppers Stop is the nations leading premier retailer of fashion and beauty brands.

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