Retail chain Shoppers Stop saw a notable 83.14 percent decline in consolidated net profit at INR 2.73 crore for the second quarter ending on September 30. This significant downturn was primarily a result of subdued demand in the apparel sector, although it was somewhat offset by growth in the non-apparel business.
According to a regulatory filing by Shoppers Stop, the company had recorded a net profit of INR 16.20 crore during the July-September period one year ago.
During the initial quarter of this fiscal year, the company’s revenue from operations reached INR 1,039.12 crore, marking a 2.6 percent increase from INR 1,012.74 crore in the corresponding period of the previous year.
During the September quarter, the total expenses amounted to INR 1,041.31 crore, indicating a 5 percent rise.
“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-apparels,” Shoppers Stop Executive Director and CEO Kavindra Mishra said.
Its “net profit for the quarter was affected due to muted demand in apparel, partially offset by growth in non-apparel,” he added.
During the quarter, it added 11 stores, which include – four Department, three Beauty and four Intune stores, the company said.
“Overall, the company spent a capex of INR 46 crore. Our commitment to invest in new stores will remain unchanged and plan to open 15 Departmental stores during the year,” the statement said.
Over the outlook, Mishra said Shoppers Stop anticipates a rebound in discretionary spending, propelling the company’s growth trajectory further in the second half of the fiscal.
“The growth prospects of both the Indian economy and fashion apparel are expected to be positive and we are determined to leverage our robust brand portfolio to drive consistent, sustainable growth,” he said.
Meanwhile, in a separate filing, Shoppers Stop said Christine Kasoulis has resigned from the position of the Non-Executive Independent Director of the Company with effect from October 18, 2023, subsequent to her appointment as Director.
“… She has taken up full-time employment which has resulted in her getting preoccupied and other personal commitments,” it said.
Shoppers Stop operates 102 department stores, 7 premium home concept stores, 87 Specialty Beauty stores of M.A.C, Est e Lauder, Bobbi Brown, Clinique, Jo Malone, Too Faced, SS Beauty, 6 Intune stores and 22 Airport doors.
Shoppers Stop shares on Wednesday settled at INR 690.05 on the BSE, up 0.98 per cent from the previous close.