Festive calendar shifts and uneven discretionary demand weigh on margins even as premium and beauty segments show resilience
Multi-brand fashion retailer Shoppers Stop reported a steep fall in profitability for the December quarter, with consolidated net profit declining sharply to Rs 16.1 crore compared with Rs 352.2 crore in the year-ago period.
The company’s revenue from operations increased 2.6 per cent year-on-year to Rs 1,415 crore in Q3, up from Rs 1,379 crore in the corresponding quarter last year. Operating earnings, however, came under pressure, with Ebitda falling 11.1 per cent to Rs 217.8 crore from Rs 245 crore in Q3FY25. Ebitda margin contracted to 15.4 per cent from 17.7 per cent a year earlier.
“Overall sales for the quarter were flat, impacted by festive calendar shifts, uneven discretionary demand and elevated pollution levels in Northern India. Against this backdrop, the company continued to strengthen its premium portfolio, which recorded steady like-for-like growth and increased its contribution to total sales,” the company said in its exchange filing.
Against this backdrop, the company continued to pivot its portfolio towards premium offerings, which delivered steady like-for-like growth and expanded its contribution to overall sales.
Premium brands accounted for 69 per cent of total sales in the quarter, growing 6 per cent year-on-year, with a similar 6 per cent increase on a like-for-like basis. Core business revenues stood at Rs 1,516 crore, broadly flat compared with the same period last year.
The beauty segment remained a key growth driver, with sales rising 14 per cent year-on-year to Rs 395 crore. Intune, the company’s private label brand, recorded 22 per cent growth in revenues to Rs 77 crore. Average transaction value and average selling price both increased 7 per cent, while customer footfalls improved 5 per cent on a like-for-like basis, marking the second consecutive quarter of growth.
During Q3FY26, Shoppers Stop expanded its physical network by opening three department stores, three Intune stores, and one HomeStop outlet. Capital expenditure during the quarter was Rs 35 crore, taking cumulative capex for the year to Rs 89 crore. The company also reduced its working capital levels, while net debt remained stable at Rs 90 crore.
Commenting on the performance, Kavindra Mishra, Managing Director and CEO of Shoppers Stop, said, “Q3 was marked by external factors such as festive calendar shifts and uneven consumption trends, which weighed on overall sales. However, we continued to make steady progress on our strategic priorities. Premium brands grew on a like-for-like basis and now account for 69 per cent of our total sales, reinforcing the direction of our portfolio shift.”
He added, “The re-launch of our Juhu store as one of India’s most premium experiential retail destinations reflects our long-term commitment to differentiated customer experiences. Categories such as beauty, handbags, and watches continue to scale well, and our beauty distribution business has delivered strong year-on-year growth.”
