Retailer reports higher revenue on beauty and premium fashion sales, expects strong festive and wedding season demand to lift growth
The Shoppers Stop reported a net loss stood at Rs 22.68 crore in Q2 FY26, compared to Rs 22 crore in the same quarter last year. Despite this, revenue from operations rose 10.04 per cent year-on-year to Rs 1,175.31 crore, led by higher spending in beauty and premium fashion categories.
After the earnings report, the shares fell 2.67 per cent to Rs 393.15 on Friday after the retailer reported a marginal widening of its standalone net loss for the September quarter, even as it expressed optimism about demand recovery during the ongoing festive and wedding season.
The October–December quarter, typically the most crucial period for retailers, is expected to see stronger footfalls and higher spending across categories such as fashion, beauty, and accessories.
On the operational front, the retailer reported a pre-tax loss of Rs 30.21 crore, compared to Rs 30.68 crore a year earlier. Gaap Ebitda rose to Rs 173 crore from Rs 157 crore, while non-Gaap Ebitda increased 7 per cent year-on-year to Rs 23 crore. The Gaap gross margin stood at 39.2 per cent, marginally lower than 39.9 per cent a year ago.
The company’s average transaction value (ATV) climbed 8 per cent year-on-year to Rs 5,109 crore, driven by continued premiumisation. Private brand sales touched Rs 161 crore, contributing 13 per cent to total sales and 17 per cent to the apparel segment.
Shoppers Stop’s beauty distribution business was a standout performer, reporting Rs 106 crore in sales, a sharp 103 per cent year-on-year growth. The retailer, which houses luxury labels such as Armani Exchange and Michael Kors, continues to expand its footprint in high-growth categories to tap into India’s growing base of affluent consumers.
During the quarter, the company opened one department store, three beauty stores, and three Intune stores, backed by capital expenditure of Rs 34 crore. Its First Citizen loyalty members contributed 83 per cent of overall sales, with 69 per cent coming from repeat customers and 14 per cent from new members.
The retailer’s consolidated net loss stood at Rs 20.11 crore, marginally narrower than Rs 20.59 crore in the same period last year, while total revenue increased 13 per cent to Rs 1,257 crore.
Rivals Trent and Arvind Fashions are yet to announce their quarterly results, with Trent scheduled to declare earnings on 7 November.
