Business & Policy | Fashion Updates

Shoppers Stop Reports Steady Q2 Revenue but Sees Significant Profit Drop

Published: December 26, 2023
Author: Fashion Value Chain

For Shoppers Stop Ltd., the second quarter of the current fiscal year showed nearly stagnant revenue, with sales reaching Rs. 1,025 crore in Q2, FY ’24, compared to Rs. 1,008 crore in Q2, FY ’23. However, the company, a prominent retailer of fashion and beauty brands, experienced a substantial drop in profit, with profits plummeting to Rs. 2 crore in Q2 FY ’24, compared to Rs. 18 crore in Q2 FY ’23.

The retailer attributed the decline in net profits for the quarter to subdued demand in the apparel sector, although this was partially offset by growth in non-apparel segments. Notably, the retailer’s private brands sales reached Rs. 184 crore, sustaining last year’s contribution levels of 14 percent to total sales and 21 percent on apparel sales.

Kavindra Mishra, the Executive Director and CEO of the company, provided insight into the results, mentioning that Shoppers Stop achieved impressive financial outcomes despite challenging market conditions and the shifting of the Pujo season from Q2 to Q3 this fiscal year. He highlighted that premiumization was maintained across various product categories, resulting in a 5 percent growth in the Average Selling Price (ASP) and a 1 percent growth in Items per Ticket (IPT) compared to the corresponding quarter of FY ’23.

Looking ahead, Mishra expressed optimism as they entered the Festive Season, anticipating a rebound in discretionary spending, which is expected to propel the company’s growth in the second half of the fiscal year. He emphasized the company’s commitment to enhancing its value proposition, providing an enhanced shopping experience to customers, and improving operational efficiency.

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