Last Updated on January 19, 2024 by ethinos
Table of Content
Key Highlights
- The company reported quarterly sales of Rs 1,207 Cr, reflecting a substantial 7% YoY growth.
- EBITDA for the quarter stands at Rs. 219 Cr (GAAP).
- Beauty segment exhibited outstanding performance with a growth of +10%, driven by Fragrance (+41%) and Make up (+6%). The overall mix of the beauty category reached 18%.
- Private Brands constituted 13% of the mix, while apparels contributed to 19%. Women’s Indian wear demonstrated remarkable growth at +7%.
- Premiumization is on the rise, indicated by an increase in ATV (Average Transaction Value) by 6%.
- Store expansion efforts resulted in the addition of 13 stores during the quarter, distributed across 4 Department stores, 4 Beauty stores, 4 Intune stores, and 1 Airport store. Capex investments for Q3 amounted to Rs. 51 Cr, bringing the YTD (Year-to-Date) total to Rs. 162 Cr.
- The company maintains a debt-free status and boasts a Net Cash surplus of Rs. 40 Cr.
Additional Read: Q3 Results Dashboard
First Citizen Program
- First Citizen Members contributed significantly, accounting for 78% of overall sales.
- Of these, 65% were repeat members, and 13% were new members.
- Premium Black Card members saw a notable 18% YoY increase, contributing 13% to overall sales.
- The quarter witnessed an addition of 191K members, reaching a total base of 9.7Mn.
- Customer engagement remained robust, with events like sailing and cocktail making organised for First Citizen Black Card members. 118 customer events were held across all stores.
Private Brands
- Private Brands achieved sales of Rs 189 Cr, contributing 13% to overall sales and 19% to apparel sales.
- Women’s Indian Wear demonstrated impressive growth at +7%.
- The Sanya X Kashish campaign garnered a positive response, and Kashish sales grew by +18%. Kidswear within the STOP brand grew by 8%.
Beauty Segment
- Beauty sales grew by +10%, reaching Rs. 262 Cr and contributing 18% to overall sales.
- Initiatives like customer engagements and in-store experiences strengthened the Beauty Eco Systems.
- 266,000 makeovers and 138 master classes, covering “Bridal makeup and Party Glam Look,” were conducted.
- A new 3000 sq ft Beauty Store was opened at the prestigious T2 Bengaluru Airport.
Intune (Fashion for All)
- Intune, the “Fashion for All” format, expanded with the addition of 4 stores during the quarter, totaling 10 across 6 citiesFull price sell-through reached 65%, and the format gained popularity for family shopping, with a Kidswear Mix at 27%.
- Plans include adding 14 Intune stores in Q4FY24, reaching a total of 24 by FY24 end.
Beauty Distribution
- The Beauty Distribution business achieved sales of Rs 39 Cr, expanding its network to over 334 doors.
- New additions to the distribution portfolio include Fragrance brand Armaf and Makeup brand Soda Makeup, bringing the total brand count to 18.
Store Expansion
- The company is on track to meet its guided store expansion for FY24.
- This quarter saw the opening of 4 department stores, 4 beauty stores, 4 Intune stores, and 1 Airport store, totaling 13 stores.
- Year-to-date, 33 stores have been opened.
- The company invested Rs 51 crores in expansion during the quarter.
Key financial highlights for Q3 FY24
| Non GAAP | GAAP | |||||
| Rs. in Cr | Q3FY24 | Q3FY23 | Growth% | Q3FY24 | Q3FY23 | Growth% |
| Sales | 1,484 | 1,430 | 4% | 1,207 | 1,132 | 7% |
| Gross Margin | 37.1% | 37.8% | (70)Bps | 39.7% | 40.9% | (110)Bps |
| EBITDA | 91 | 128^ | -29% | 219 | 240^ | -9% |
| PBT | 54 | 91^ | -40% | 49 | 85^ | -42% |
| PAT | 50 | 68^ | -40% | 35 | 62^ | -43% |
^FY23 numbers includes reversal of Interest on GST Rs.17 Crs in other income and Rs.3 Crs in finance cost owing to repealing of certain section in the statutes
About Shoppers Stop Limited
Shoppers Stop Limited, established in 1991, stands as India’s leading premier retailer of fashion and beauty brands. With a robust presence across 105 department stores, 7 premium home concept stores, 88 Specialty Beauty stores featuring renowned brands, 10 Intune stores, and 23 Airport doors, the company occupies an impressive 4.1 million sq. ft. Shoppers Stop is not just a retailer; it is a home to the esteemed ‘First Citizen’ loyalty program, one of the country’s longest-running programs.
In addition to its extensive physical footprint, Shoppers Stop embraces innovation with its unique ‘Personal Shopper’ service, transforming the shopping experience in India by adding value, comfort, and convenience. The brand’s diverse Omni-channel offering encompasses over 800 recognized and trusted brands, spanning a wide range of products. This comprehensive approach reflects the company’s overarching commitment to delivering customer delight.
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Sources:
https://www.bseindia.com/xml-data/corpfiling/AttachLive/034516a2-7089-44cb-95ec-b1b3c4660fc1.pdf
https://www.bseindia.com/xml-data/corpfiling/AttachLive/a20e965a-4de5-49b5-8bc7-8913e00a0ad6.pdf
