Shoppers Stop Slips as Profits Plummet

19 Jan 2024 , 11:32 AM

A day after the company revealed a steep drop in its net earnings for the third quarter, Shoppers Stop shares fell 5% in early trading on January 19.

At Rs 36.70 crore, the company’s net profit decreased 41.2% year over year. Due to a high base from the prior year, which included the reversal of interest on GST worth Rs 17 crore, the fall was more severe.

The quarter’s revenue increased by about 9% to Rs 1,237.5 crore from Rs 1,137.1 crore during the same period last year.

With almost 10% growth, the beauty vertical outperformed, driven by growth in the make-up and fragrance segments, which increased by 6% and 41% , respectively.

The non-apparel vertical expanded by more than 5%, with the home and handbag segments seeing the greatest rise at 11% and 9%, respectively.

Shoppers Stop was trading on the NSE at Rs 680.20 at 11:18 a.m.

Additionally, the company invested Rs 41 crore in technology, renovations, and new outlets. During the quarter, the company opened 13 new locations, including one airport outlet, four department stores for beauty products, and one Intune store.

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