Shoppers Stop slides after posting Q3 net loss at Rs 6.5 cr

The company reported a consolidated net loss of Rs 6.51 crore in Q3 December 2019 compared with net profit of Rs 41.66 crore in Q3 December 2018.

Net sales fell marginally by 0.6% to Rs 1,018.99 crore in Q3 December 2019 over Q3 December 2018. Consolidated profit before tax slipped 7.4% to Rs 61.63 crore in Q3 December 2019 as against Rs 66.55 crore in Q3 December 2018. Tax expense, during the quarter, dropped 16% to Rs 25.10 crore as compared to Rs 29.89 crore in corresponding quarter last year. The Q3 results were declared after trading hours yesterday, 31 January 2020.

During the quarter, the Earnings before interest, tax, depreciation and amortization (EBITDA) rose 1.7% to Rs 102.20 crore in Q3 December 2019 as compared to Q3 December 2018 (through non-generally accepted accounting principles method).

As of 31 December 2019, the company has added 15 stores during the quarter of which 6 are department stores and 9 beauty doors taking the total footprint to 89 department stores and 135 beauty doors across 42 cities in India.

Commenting on the Q3 performance, Rajiv Suri, the Customer Care Associate, Managing Director & Chief Executive Officer of Shoppers Stop, has said that, In a challenging economic environment we found opportunities to seed future growth for the company by aggressive expansion through internal accruals. During the year we opened 28 stores (8 Department and 20 Beauty) and plan to open 23 Stores (4 Department, 11 Beauty and 8 Airport stores) in Q4. This expansion will add circa Rs 500 Crs top-line on an annualized basis, more importantly these stores have been EBITDA accretive within the first quarter of operation.

Shoppers Stop slipped 1.49% to Rs 407.85. The scrip traded in a range of Rs 406.65 and Rs 407.85.

Shoppers Stop is engaged in the business of retailing a range of household and consumer products through departmental stores. It operates through approximately 80 such departmental stores located in approximately 40 cities.

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