Shoppers Stop Reports 5% Growth In GAAP Sales In Q1 FY25

Shoppers Stop Ltd reported its Q1 FY25 financial results, showing a 5% increase in GAAP sales to Rs 1,034 crore compared to the same quarter last year. Non-GAAP sales rose by 2% to Rs 1,260 crore. However, the company experienced a 170 basis point drop in gross margin to 40.6%, and EBITDA fell by 19% to Rs 146 crore. The profit before tax (PBT) was a loss of Rs 32 crore, with profit after tax (PAT) also in the red at Rs 23 crore.

CEO Kavindra Mishra attributed the results to subdued consumption driven by a prolonged heatwave, elections, fewer weddings and inflation. Despite these challenges, Shoppers Stop is implementing a recovery plan focused on premiumization, marketing investments and enhancing customer experiences. The company is also increasing personal shoppers during festive seasons, closing unviable stores and rationalizing costs.

Shoppers Stop saw its First Citizen loyalty membership grow to over 10 million, contributing 80% of overall sales. The First Citizen programme saw 67% repeat and 13% new members, while Premium Black Card members contributed 14% of sales with a 76% renewal rate. Private brand sales reached Rs 151 crore, accounting for 12% of total sales and 18% of apparel sales. Inventory was reduced by Rs 21 crore QoQ and Rs 65 crore YoY. The INTUNE segment expanded by adding nine stores, bringing the total to 31 across 14 cities, with plans to increase to 80 stores in FY25.