Shoppers Stop Q3 results: PAT rises 41% to Rs 52.23 cr, revenue grows 11.5%

India's Shoppers Stop Ltd posted a rise in quarterly profit on Tuesday, after two straight quarters of loss, driven by strong demand for premium products such as watches and perfumes during the festive season.

The department store chain said consolidated net profit rose nearly 41 per cent to Rs 52.23 cr ($6.03 million) for the third quarter ended Dec. 31 from Rs 36.85 cr a year ago.

The company also posted a profit fall in the first three quarters of fiscal 2024. 

Spending on beauty and lifestyle products surged during India's festive season between October and December, which typically accounts for the bulk of retailers' annual sales.

 

Premiumization is holding its ground amid sticky inflation across various consumer segments, the company said in a presentation to investors.

Shoppers Stop, which retails luxury brands such as Armani Beauty and Michael Kors, reported an 11 per cent rise in revenue from operations to Rs 1,379 cr ($159.33 million).

Premium categories contributed to 64 per cent of overall revenue in the third quarter, up 9 per cent year-on-year, said the company, with watches, handbags and fragrance categories outperforming.

Shares of the company closed about 2.5 per cent higher ahead of results.

Larger rivals Tata Group-owned Trent, Arvind Fashions, and Aditya Birla Fashion and Retail will report their results in February.

 

(Reporting by Ashna Teresa Britto and Ananta Agarwal; Editing by Janane Venkatraman)