Shoppers Stop dropped 4.22% to Rs 785.55 after the company reported standalone net loss of Rs 22.51 crore in Q1 FY25 as against net profit of Rs 14.94 crore recorded in Q1 FY24.
However, revenue from operations grew by 5.31% year on year to Rs 1,033.70 crore in the quarter ended 30 June 2024.
The company reported pre-tax loss of Rs 31.45 crore in Q1 FY25 as against a profit before tax of Rs 20.43 crore reported in the same period a year ago.
Total expenses stood at Rs 1,068.69 crore in the June quarter, up 10.36% from Rs 968.37 crore posted in Q1 FY24.
Gross margin reduced to 40.6% in Q1 FY25 as compared to 42.3% registered in Q1 FY24.
EBITDA was at Rs 146 crore in Q1 FY25, registering a decline of 18.89% on YoY basis. EBITDA margin dropped to 14.1% in Q1 FY25 as compared to 18.3% recorded in Q1 FY24.
Also Read
The company said that the premium brands contribution during the quarter improved to 57% from 54% in Q1 FY24, resulting into average transaction value (ATV) growth of 5%
The firm's First Citizen members contributed 80% to overall sales, out of which 67% were repeat and 13% new members.
Private Brands sales were at Rs 151 crore with an overall contribution of 12% to the sales and 18% to apparel sales. The firms inventory reduced by Rs 21 crore QoQ and Rs 65 crore YoY.
The companys Beauty sales stood at Rs 212 crore, registered growth more than 5%, outperforming other segments with 17% contribution to overall sales. During the quarter, the firm launched 4 MAC Shop in Shops in tier 2 cities
The Beauty distribution business reported Rs 39 crore sales with distribution network expanded to over 444 doors. With addition of 8 fragrance brands including Armani and Ajmal during the quarter, total brand portfolio expanded to 27 brands, said the company.
INTUNE reported Rs 35 crore sales and added 9 stores during the quarter with 31 as on date, with a presence in 14 cities (5 during the quarter). The company said that it is planning to intensify store openings from 60 to 80 in FY25.
The company has launched 11 stores during the quarter (2 Department and 9 INTUNE) with a capex investment of Rs 45 crore.
Kavindra Mishra, managing director and CEO, Shoppers Stop said, The industry witnessed subdued consumption due to prolonged heat wave, elections, fewer weddings and inflation. The sales for the quarter stood at Rs 1,034 crore +5% growth and EBITDA at Rs 146 crore. This has impacted our profits, however, we have strong recovery plan.
Some of our recovery plan include our continuous focus on premiumization, Investment in Marketing to improve Customer Entry, elevating our customer experience through high end coffee shops in several stores, increase in personal shoppers, particularly during our festive season, etc. We are also planning to close a few unviable stores and rationalize costs during the year.
During the quarter, specifically on our strategic pillars, our loyalty membership increased to more than 10 million first citizen customers. On private brand portfolio, we aim to provide aspirational fashion at affordable prices. Further we aim to drive higher growth in beauty through engagement, expression and education and expanding distribution portfolio.
On other KPIs our items per transaction (IPT) increase +2%, average transaction value (ATV) +5% and average selling price (ASP) increased +3%.
With respect to its outlook, Shoppers Stop stated, Economic growth to sustain, enabling increase in affluent household. We expect stronger demand during festive season, driven by lesser disruptions and higher weddings. Expectations of better monsoon and favorable budget may influence near term growth. Commodity prices continues to be benign and may negate any price increases in the short term. Under indexed value retail should augment leapfrog growth, particularly shifting from unorganized to organized sector.
Meanwhile, the companys board has approved the additional investment of up to Rs 5 crore in Global SS Beauty Brands (GSBBL), formerly known as Upasna Trading, in one or more tranches, through a subscription to right issue of 500 preference shares, each with a face value of Rs 1,00,000, each.
The total aggregate investment approved by the company in GSBBL as on 18 July 2024 is Rs 60 crore. The acquisition is expected to be completed in within 3 months.
Shoppers Stop is the nation's leading premier retailer of fashion and beauty brands.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content