Shoppers Stop Reports Robust Q1FY25 Results and Strategic Expansion

On July 18, 2024, Shoppers Stop Ltd, a prominent department store offering premium fashion and beauty brands, announced its financial results for the quarter ending June 30, 2024.

Key Financial Highlights For Q1 FY25

Shopper Stop reported strong results for Q1FY25, with sales reaching ₹1034 crore, marking a 5% increase year-on-year, and EBITDA of ₹146 crore. The beauty segment performed exceptionally well, with a 5% growth in sales driven by a 19% rise in fragrance sales, which now make up 17% of the product mix. The company continues to expand strategically, adding 2 new department stores and 9 INTUNE stores, which generated ₹35 crore in sales and reported positive EBITDA.

Membership in the First Citizen’s club has surpassed 10 million, and the contribution of personal shoppers improved by 5%, with over 140 new personal shoppers joining. Premium brands now account for 57% of sales, up from 54% last year, leading to a 5% increase in average transaction value. Additionally, Shopper Stop invested ₹45 crore in capital expenditures during the quarter.

Performance of Strategic Pillars in Q1FY25

• Beauty: Beauty sales grew by 5% to ₹212 crore, contributing 17% to overall sales. The company enhanced its beauty ecosystem with 239,000 makeovers, 182 master classes, influencer-led events, and 4 Beauty Soiree events. Four new MAC Shop-in-Shops were launched in Tier 2 cities.
• Beauty Distribution: The beauty distribution business saw sales of ₹39 crore and expanded its network to over 444 doors. The brand portfolio grew to 27 with the addition of 8 new fragrance brands, including “Armani” and “Ajmal.”
• Store Expansion: The company opened 11 new stores this quarter, including 2 department stores and 9 INTUNE stores, with a capital expenditure of ₹45 crore.

About Shoppers Stop Limited

Shoppers Stop Ltd, founded in 1991, is a leading retailer in India specialising in fashion and beauty brands. It operates 114 department stores, 7 premium home concept stores, and 87 speciality beauty stores featuring brands like M.A.C, Estée Lauder, and Clinique. The company also runs 31 INTUNE stores and 20 airport outlets, covering a total area of 4.4 million square feet.

On July 19, 2024, Shoppers Stop Ltd’s share price opened at ₹790.05, touching the day’s low of ₹770.05 as of 12:43 PM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.