Shoppers Stop reported a net loss in Q4 as higher expenses, inflationary pressure and weak discretionary spending offset revenue growth, even as its beauty segment delivered strong performance
Shoppers Stop reported a loss for the fourth quarter, as subdued discretionary spending, supply-chain disruptions and rising inflation weighed on its performance. The Mumbai-based retailer posted a net loss of Rs 16.35 crore, compared with a profit of Rs 1.99 crore in the corresponding period last year. The company said elevated inflation and geopolitical uncertainties, particularly in the Middle East, impacted consumer sentiment during the quarter.
India’s retail inflation stood at around 3.4 per cent in March, driven by higher food prices, adding to cost-of-living pressures and affecting discretionary consumption.
Revenue from operations rose 13.7 per cent year-on-year to Rs 1,210 crore. However, total expenses increased at a faster pace of 14 per cent to Rs 1,242 crore, weighing on profitability.
The company’s beauty segment continued to perform well, with revenue growing 17 per cent to Rs 309 crore during the quarter.
Commenting on the outlook, Chief Executive Officer Kavindra Mishra said that while supply-chain disruptions may continue to create inflationary pressures, demand is expected to remain stable over the medium term.
In comparison, Trent reported a 26 per cent increase in quarterly profit last month, highlighting a mixed performance across the retail sector. Other players, including Arvind Fashions and Aditya Birla Fashion and Retail, are expected to report their quarterly earnings later in May.
