Shoppers Stop Reports 41.26% Drop in Q3 Net Profit, Operating Revenue Up by 8.83%

19 Jan 2024 , 10:36 AM

Shoppers Stop, a retail chain, revealed on Thursday that its consolidated net profit for the third quarter ended December 2023 dropped by 41.26% to Rs 36.85 crore. In October-December of last year, the firm reported a net profit of Rs 62.74 crore, according per a regulatory filing from Shoppers Stop.

Nonetheless, during the reviewed quarter, its operating revenue increased by 8.83% to Rs 1,237.52 crore. A year ago, it was worth Rs 1,137.07 crore. At Rs 1,189.96 crore, its overall expenses for the December quarter increased by 10.62% .

At Rs 1,189.96 crore, its overall expenses for the December quarter increased by 10.62%. Including other revenues, Shoppers Stop’s total revenue increased 6.83% to Rs 1,240.88 crore. Thirteen new stores were added during the quarter, comprising four department stores, four beauty stores, four Intune locations, and one airport store.

‘Despite a significant decrease in discretionary spending, we have proven to be quite resilient during these difficult times. Despite weak customer demand, our company has produced impressive financial achievements, with a 7% increase in sales,’ stated Kavindra Mishra, CEO and Executive Director of Shoppers Stop.

The company has noticed that consumers are spending more on the unique combination of premium brands and experiences across a range of categories, even in spite of the generally quiet market conditions.

In terms of margins, he stated, ‘Our EBITDA has been lower due to one-time income of Rs 17 crore as other income in FY23, and we have made provision for obsolescence of circa Rs 9 crore during the quarter.’ 105 department stores are run by Shoppers Stop.

In addition, the retail company led by the Raheja family runs 23 airport stores, 10 Intune stores, 88 specialized beauty stores including M.A.C., Este Lauder, Bobbi Brown, Clinique, Jo Malone, Too Faced, and SS Beauty, and seven luxury home concept stores. Shoppers Stop’s stock increased 1.62% over the previous close on Wednesday, closing at Rs 701.50 on the BSE.

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