Shoppers Stop Q3 profit down 41.2% to Rs 36.85 crore, revenue up 8.8% to 1,237.5 crore

Retail chain Shoppers Stop on Thursday reported a decline of 41.26 per cent in consolidated net profit at Rs 36.85 crore in the third quarter ended December 2023.

The company had posted a net profit of Rs 62.74 crore in the October-December period a year ago, according to a regulatory filing from Shoppers Stop.

However, its revenue from operations was up 8.83 per cent to Rs 1,237.52 crore during the quarter under review. It was Rs 1,137.07 crore a year ago.

Its total expenses in the December quarter were up 10.62 per cent to Rs 1,189.96 crore.

Total revenue at Shoppers Stop, which includes other income, was at Rs 1,240.88 crore, up 6.83 per cent.

During the quarter, it added 13 stores which include four department stores, four beauty, four Intune and one airport store.

"With considerable slowdown on discretionary spending, we have demonstrated notable resilience in these tough conditions.

Our company has delivered admirable financial results with a sales growth of 7 per cent despite muted consumer demand," Shoppers Stop Executive Director and CEO Kavindra Mishra said.

The company has observed that despite the overall muted market conditions, customers have upped their spends on the differentiated mix of premium brands and experiences across various categories.

Over the margins, he said: "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." Shoppers Stop operates 105 department stores.

Besides, the Raheja family-promoted retail firm, also operates seven premium home concept stores, 88 specialty beauty stores of M.A.C, Estée Lauder, Bobbi Brown, Clinique, Jo Malone, Too Faced, SS Beauty, 10 Intune stores and 23 airport stores.

Shoppers Stop shares on Wednesday settled at Rs 701.50 on the BSE, up 1.62 per cent from the previous close.