Shoppers Stop declined 2.42% to Rs 652.45 after the company's consolidated net profit tumbled 18.9% to Rs 62.74 crore in Q3 FY23 from Rs 77.32 crore recorded in Q3 FY22.
Revenue from operations stood at Rs 1,137.07 crore in the quarter ended 31 December 2022 as against Rs 958.11 crore posted in Q3 FY22, registering a growth of 18.7%.
Consolidated profit before tax declined 9.2% to Rs 85.78 crore in Q3 FY23 as compared to Rs 94.44 crore in Q3 FY22. Total expenses jumped 18.84% year on year (YoY) to Rs 1,075.66 crore in Q3 FY23.
Gross margin was at Rs 474 crore in Q3 FY23, rising 21% YoY. EBITDA grew 27% to Rs 128 crore in quarter ended 31 December 2022.
The company's Private Brands revenue grew 23% YoY and beauty segment revenue was up by 18% YoY.
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The company opened 6 department and 5 beauty stores in Q3, taking the total store count to 271, spread across 50 cities across India. The firm intends to add 5 department and 4 beauty stores by the end of fiscal 2022-23, said the company.
Shoppers Stop said that its First Citizen Members contributed 77% of its offline sales and 38% of online sales. The company's engagement continues to remain focused with multiple activities during the quarter.
The company said that it continued to remain debt free with surplus cash of Rs 42 crore.
The customer visits has decreased by 3.5% YoY, the Average Transaction Value (ATV) was up by 10.14% YoY and the Average Selling Price (ASP) improved by 13.04% in Q3 FY23. The company reported GAAP total revenue of Rs 1,156 crore in Q3 FY23, rising by 20% from Rs 966 crore recorded in Q3 FY22. GAAP EBITDA for the quarter improved to Rs 240 crore as compared to Rs 198 crore in Q2 FY22, recording a growth of 21%.
Venu Nair, MD and CEO at Shoppers Stop, said, "The growth momentum continued from the second quarter, tapering down a little after Diwali. Customer sentiments remain largely buoyant due to the prolonged festive and wedding season demand. The company's strategy to give a great buying experience to the customers is fueling footfalls at our physical stores, and eyeballs online. The revamped look and feel of the stores, and diversified product SKUs have made Shoppers Stop the preferred choice of customers.
Nair stated, We clocked the highest ever quarterly sales, gross margin, EBITDA and PBT. Product premiumization across private brand categories has resulted in the highest quarterly sales with a growth of 23%. The beauty category was strong and reported their highest quarterly sales with a growth of 18% The company's fund allocation strategy has kept us debt free, and we have a net surplus cash of Rs 42 crore in our books.
Our store expansion plan is on track as we opened six department and five beauty Stores. Five more department stores are under fit out. By the fiscal year end, we plan to open a further 5 Department stores and 4 Beauty Stores in 7 cities, taking the overall store count to 280 stores in 54 cities, he added.
Shoppers Stop is the nation's leading premier retailer of fashion and beauty brands.
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