Shoppers Stop stock price falls 6% on weak June quarter results

Shoppers Stop stock falls: Shares of Shoppers Stop fell as much as 5.99 per cent to hit an intraday low of Rs 771 per share. 

However, the stocks were trading 4.08 per cent lower at Rs 786.75 per share, at 12:22 PM. In comparison, BSE Sensex was trading 0.48 per cent lower at 80,956.06 levels. 

The fall in the stock price came on the back of weak earnings in the June quarter of financial year 2025 (Q1FY25).

The company posted a consolidated net loss of Rs 22.7 crore in Q1FY25, as opposed to a profit of Rs 14.5 crore in the same quarter a year ago (Q1FY24).

 

The revenue from operations, however, jumped 7.6 per cent on a Y-o-Y basis to Rs 1,069.3 crore as opposed to Rs 993.6 crore in the same quarter last year. 

Earnings before interest, tax, depreciation and amortisation (Ebitda), also known as operating profit, fell 16.8 per cent to Rs 142.9 crore in Q1FY25, from Rs 171.9 crore in Q1FY24.

Consequently, Ebitda margin slipped 390 basis points to 13.4 per cent in Q1FY25, as opposed to 17.3 per cent in Q1FY24. 

Segment-wise growth

In Q1FY25, Shoppers Stop reported a 5 per cent year-on-year increase in sales to Rs. 1034 crore. The beauty segment showed strong performance with a 5 pe rcent growth, driven by a notable 19 per cent increase in fragrance sales, contributing to an overall mix of 17 per cent.

The strategic expansion efforts included the addition of 2 departments and 9 INTUNE stores, with INTUNE stores alone generating Rs. 35 crore in sales during the quarter. 

Store Ebitda remained positive, and the First Citizen’s club surpassed 10 million memberships. 

The contribution from personal Shopperss improved 5 per cent, adding over 140 new personal Shopperss. Premium brands' contribution to sales increased from 54 per cent to 57 per cent year-on-year, resulting in a 5 per cent rise in average transaction value (ATV). The quarter also saw significant capital expenditures of Rs. 45 crore.

Kavindra Mishra, managing director and CEO, Shoppers Stop Ltd, said, “The industry witnessed subdued consumption due to prolonged heat wave, elections, fewer weddings and inflation. The sales for the quarter stood at Rs 1034 Cr + 5% and EBITDA at Rs.146 Cr. This has impacted our Profits, however, we have strong recovery plan. Some of our recovery plan include our continuous focus on premiumization, Investment in Marketing to improve Customer Entry, elevating our Customer experience through High End Coffee Shops in several stores, Increase in Personal Shopperss, particularly during our festive season, etc.” 

Mishra added that the company is also planning to close a few unviable stores and rationalise costs during the year. 

Established in 1991, Shoppers Stop Ltd. is a retailer of fashion and beauty brands, renowned for its extensive network of 114 department stores, 7 premium home concept stores, 87 Specialty Beauty stores featuring brands like M.A.C, Estée Lauder, Bobbi Brown, Clinique, Jo Malone, Too Faced, and SS Beauty, alongside 31 Intune stores and 20 Airport doors, covering a total area of 4.4 million square feet. 

Shoppers Stop is transforming the retail experience with its innovative 'Personal Shoppers' service, enhancing customer satisfaction through enhanced value, convenience, and personalised assistance. 

With an extensive Omni channel presence, the brand offers over 800 recognised brands, ensuring a comprehensive range of products aimed at delivering unparalleled customer delight.