India's Shoppers Stop's sales rise 4% to $127 mn in Q2 FY25

GAAP gross margin for Q2 FY25 was 39.9 per cent, down by 80 basis points from 40.7 per cent in Q2 FY24. Meanwhile non-GAAP gross margin stood at 36.88 per cent for Q2 FY25, marking a slight improvement of 10 basis points over Q2 FY24's 36.74 per cent.

GAAP earnings before interest, taxes, depreciation, and amortisation (EBITDA) for Q2 FY25 was ₹157 crore (~$18.67 million), a decline of 8 per cent from ₹170 crore (~$20.2 million) in Q2 FY24. Non-GAAP EBITDA saw a more significant decrease, dropping 49 per cent to ₹21 crore (~$2.49 million) in Q2 FY25 from ₹41 crore (~$4.87 million) in the previous year.

GAAP profit before tax (PBT) for Q2 FY25 showed a loss of ₹31 crore (~$3.68 million), compared to a marginal profit of ₹2 crore (~$0.23 million) in Q2 FY24. On a non-GAAP basis, PBT stood at a loss of ₹23 crore (~$2.73 million). GAAP profit after tax (PAT) for Q2 FY25 was a loss of ₹22 crore (~$2.61 million), compared to a profit of ₹2 crore in Q2 FY24. Non-GAAP PAT reflected a loss of ₹2 crore.

Results for H1 FY25

GAAP sales for the first half (H1) of FY25 reached ₹2,102 crore (~$250 million), a 5 per cent increase compared to ₹2,007 crore in H1 FY24. Non-GAAP sales for H1 FY25 amounted to ₹2,558 crore (~$304.2 million), reflecting a 2 per cent rise from ₹2,513 crore (~$298.87 million) in the previous year. GAAP gross margin for H1 FY25 was 40.2 per cent, down 130 basis points from 41.5 per cent in H1 FY24. Non-GAAP gross margin for H1 FY25 stood at 37.3 per cent, slightly below H1 FY24's 37.4 per cent by 10 basis points.

GAAP EBITDA for H1 FY25 was ₹302 crore (~$35.92 million), down 14 per cent from ₹350 crore (~$41.16 million) in H1 FY24. Non-GAAP EBITDA saw a sharp decline of 64 per cent, dropping to ₹36 crore ($4.28 million) from ₹99 crore (~$11.77 million) in H1 FY24.

GAAP PBT for H1 FY25 showed a loss of ₹63 crore, compared to a profit of ₹23 crore in H1 FY24. On a non-GAAP basis, PBT was a loss of ₹48 crore (~$5.7 million). GAAP PAT for H1 FY25 recorded a loss of ₹45 crore (~$5.7 million), compared to a profit of ₹16 crore (~$1.9 million) in H1 FY24. Non-GAAP PAT for H1 FY25 reflected a loss of ₹30 crore (~$3.56 million), down from ₹17 crore in H1 FY24.

Performance across segments

The first citizen members contributed 81 per cent to overall sales, with 67 per cent repeat and 14 per cent new members. The premium black card members contributed 14 per cent to the overall sales with an increase of +17 per cent year on year (YoY).

Private brands sales were at ₹156 crore (~$18.55 million) with an overall contribution of 12 per cent to the sales and 18 per cent in apparel segment. This helped the Shoppers Stop to reduce the inventory by ₹40 crore vs last year. The company opened its 50th Store on October 1, 2024, and with it, has a presence across 20 cities. The company also stated that it is confident of adding 22 stores in Q3 and 28 stores in Q4 this year.

The company launched 25 stores in this quarter, including 19 INTUNE, 5 Home Stop and 1 Department and plans to add 50 INTUNE, 7 Department, 6 Beauty, and 2 Home Stop stores during Q3 and Q4 of this year, totalling ₹43 crore (~$4.75 million) in capex spend.

Commenting on the Q2 FY25 results, Kavindra Mishra, managing director (MD) and chief executive officer (CEO) of Shoppers Stop Ltd, stated, “Despite a challenging external environment, we remained resilient in our pursuit to deliver growth. Shoppers Stop delivered notable financial results though the demand was muted in July and August, impacted by fewer wedding dates, extended rains, and overall weak discretionary spending. We kept a relentless focus on investing behind our Premium Category, with increased offerings in Premium Category this quarter.”

Fibre2Fashion News Desk (SG)