Indian retailer Shoppers Stop's sales climb 5% in Q1 FY25

19 Jul '24

2 min read

Indian retailer Shoppers Stop's sales climb 5% in Q1 FY25

Pic: Shoppers Stop

Insights

Shoppers Stop reported Q1 FY25 sales of ₹10.34 billion (~$123.6 million), a 5 per cent increase from last year.
Gross margin dropped to 40.6 per cent. EBITDA declined 19 per cent to ₹1.46 billion.
Net loss was ₹230 million.
First Citizen members contributed 80 per cent of sales.
Nine Intune stores were added, with plans to open 60-80 stores in FY25.

Indian retailer Shoppers Stop has reported sales of ₹10.34 billion (approximately $123.6 million) for the first quarter of fiscal 2025 (Q1 FY25), a 5 per cent increase from ₹9.82 billion in the same period of the previous year. Despite the rise in sales, the gross margin decreased to 40.6 per cent, down from 42.3 per cent, representing a drop of 170 basis points.

EBITDA for the quarter was ₹1.46 billion, a 19 per cent decline from ₹1.8 billion in Q1 FY24. The company reported a loss before tax (PBT) of ₹320 million, a significant decline from a profit of ₹200 million in the previous year, marking a negative growth of 256 per cent. The net loss after tax (PAT) stood at ₹230 million, compared to a profit of ₹150 million in Q1 FY24, reflecting a negative growth of 253 per cent, the company said in a press release.

First Citizen members made a substantial contribution, accounting for 80 per cent of overall sales, with 67 per cent being repeat members and 13 per cent new members. Notably, Premium Black Card members contributed 14 per cent to the overall sales, showing a year-on-year (YoY) increase of 5 per cent. During the quarter, the renewal rate for Black Card members was at 76 per cent.

Sales from private brands amounted to ₹1.51 billion, contributing 12 per cent to overall sales and 18 per cent to apparel sales. Inventory levels were reduced by ₹210 million quarter-on-quarter and by ₹650 million YoY.

In terms of expansion, Shopper Stop added nine new Intune stores during the quarter, bringing its presence to 14 cities, including five new locations. Conversion rates remained strong at 33 per cent. The company plans to intensify its store openings, increasing the number from 60 to 80 in FY25. Additionally, Shopper Stop launched a total of 11 stores during the quarter, including two department stores and nine Intune stores, with a capital expenditure investment of ₹450 million.

“The industry witnessed subdued consumption due to prolonged heat wave, elections, fewer weddings and inflation. This has impacted our profits; however, we have a strong recovery plan. On private brand portfolio, we aim to provide aspirational fashion at affordable prices,” said Kavindra Mishra, managing director and CEO, Shoppers Stop.

Fibre2Fashion News Desk (DP)

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