Shoppers Stop has released its earnings report for the second quarter ending on September 30 of the fiscal year 2024.
During Q2 FY24, Shoppers Stop recorded a net profit of ₹1.78 crore, a notable decrease from the ₹18.14 crore reported in the same quarter the previous year.
The retail company’s revenue from operations in Q2 FY24 amounted to ₹1,025.15 crore, showing growth compared to ₹1,008.24 crore in the corresponding quarter the previous year. EBITDA for the quarter stood at Rs 170 crores, down by 2.8% from the previous year. The Profit Before Tax (PBT) was Rs 2 crores, a significant drop from the Rs 24 crores reported in the same quarter last year. The Profit After Tax (PAT) also saw a decline, falling to Rs 2 crores from Rs 18 crores in the previous year.
While expenses for Shoppers Stop rose to ₹1,028.25 crore, up from ₹985.17 crore in the previous year, company highlighted that its total income increased to ₹1,035.69 crore in the second quarter of the fiscal year 2024, compared to ₹1,012.12 crore in Q2 FY23.
Commenting on the financial results, Kavindra Mishra, Executive Director and CEO of Shoppers Stop, stated, “Shoppers Stop reported impressive financial results, despite challenging market conditions and shifting of Pujo from Q2 to Q3 this fiscal. We have witnessed a strong pick-up in the Beauty businesses and consistent performance from non-apparel segments.” Mishra also acknowledged that the net profit for the quarter was impacted by subdued demand in the apparel segment, partially offset by growth in non-apparel categories.
The company further disclosed its commitment to investment in new stores, with plans to open 15 departmental stores during the year. Mishra expressed optimism about the growth prospects for both the Indian economy and the fashion apparel sector and emphasized leveraging their robust brand portfolio for consistent and sustainable growth.
In the second quarter, Shoppers Stop expanded by adding 11 stores, which included four department stores, three beauty stores, and four Intune stores.
In July, Shoppers Stop had previously announced its intention to expand its value-format chain, Intune, to 10 stores, up from the existing three, in order to compete with major players like Trent’s Zudio and Reliance Trends.
