Shoppers Stop posts Q3 net loss at Rs 6.5 cr

Retail chain Shoppers Stop Ltd on Friday reported a consolidated net loss of Rs 6.51 crore in the third quarter ended on December 31, 2019.

The company had posted a net profit of Rs 41.66 crore in the October-December quarter a year ago, Shoppers Stop said in a BSE filing.

Total income in the December quarter was marginally down at Rs 1,025.53 crore as against Rs 1,027.57 crore in the year-ago period.

"Against a strong base of Q3 FY19 and a subdued retail landscape with a dampened festive season, the revenue growth was muted. Nonetheless, the company pro-actively increased its productivity and efficiencies by keeping the costs in control," the company said.

"In a challenging economic environment we found opportunities to seed future growth for the company by aggressive expansion through internal accruals," Shoppers Stop MD and CEO Rajiv Suri said.

Total expenses in the said quarter were at Rs 963.90 crore, compared with Rs 961.02 crore in the third quarter of 2018-19.

Commenting on the outlook Suri said "during the year we opened 28 stores (8 department and 20 beauty) and plan to open 23 stores (4 department, 11 deauty and 8 airport stores) in Q4. This expansion will add circa Rs 500 crore top-line on an annualized basis, more importantly these stores have been EBITDA (earnings before interest, tax, depreciation and amortization) accretive within the first quarter of operation.

Share of Shoppers Stop Ltd on Friday settled at Rs 414.00 on the BSE, down 1.35 per cent over previous close.