After the firm released a strong set of results for the December-ending quarter, shares of Shoppers Stop, a well-known department store with top fashion and beauty brands, jumped 11% in early morning trading on Wednesday, January 15, to a 10-week high of ₹688.70 per share.
On Tuesday after market hours, the firm said its standalone net profit increased 37% year over year (YoY) to ₹49 crore in Q3FY25, while its operating revenue increased 9% YoY to ₹1,311 crore. On the operational side, EBITDA climbed from ₹215 crore in the same time last year to ₹240 crore during the quarter. On a quarterly (QoQ) basis, the EBITDA margin increased by 400 to 18%, while on a year-over-year (YoY) basis, it remained unchanged.
The network of department stores emphasized that 83% of its sales come from First Citizen Members, with 69% of those purchases coming from returning consumers and 14% from new members. According to the company’s results report, its Premium Black Card members contributed 17% of revenues, a 28% YoY rise, the largest share since its introduction a few years ago.
A 14% increase in fragrances drove the cosmetics segment’s ₹268 crore in sales, a 3% YoY increase. Global SS Beauty Brands, the company’s wholly-owned subsidiary, generated ₹78 crore in sales for the quarter, representing a 26% YoY increase. With a focus on profitable expansion, private brand sales reached ₹186 crore, accounting for 18% of the clothing market and 12% of total sales.
Nine INTUNE stores, six SS Beauty stores, and one department store were among the 16 new locations the business launched during the reporting quarter. ₹53 crore was spent on capital expenditures. In Q4 of this year, the company also intends to open six department shops and 26 INTUNE outlets.
Shoppers Stop’s MD and CEO, Kavindra Mishra, emphasized the company’s ability to bounce back from a challenging economic climate in her remarks on the Q3FY25 results. “We ended Q3 on a fairly positive note, and the business’s growth trajectory is heading in the right direction,” he stated. Even though consumer spending has decreased and inflation has increased, we have achieved a robust 9% volume-led revenue growth and 4% LFL growth.
Mishra mentioned several initiatives that were implemented throughout the quarter, such as “Singles Day” in Beauty, “India Weds with Shoppers Stop,” “Gifts of Love,” “Winter Magic Campaign,” and “ShowStoppers.” As a result of these efforts, premium categories now account for 64% of total income, increasing premiumization.
“Over the quarter, we have improved every KPI. Our strategic goal is to increase the profitability of private brands. With sales up 3%, the cosmetics sector is still expanding, driven by a 14% increase in perfumes. Mishra said, “Our flagship shop in Inorbit Malad, Mumbai, has undergone a complete renovation and is now open, delivering quality product offers and improved customer experiences.
30% Drop in Stock from the Most Recent Peak:
Following a consistent rising trend that saw the stock reach a new all-time high of ₹943 in September 2024, profit booking has subsequently occurred. The stock is currently 30% lower than when it peaked. The stock saw an incredible one-way run from May 2020 to August 2023, yielding a staggering 464% gain.
