Shoppers Stop on Thursday reported a fall of 41.2 per cent in consolidated net profit at Rs 36.85 crore in the third quarter (Q3) of the current fiscal year 2023-24 as against the net profit of Rs 62.74 crore in the previous fiscal’s same quarter, according to a BSE filing.
However, the company’s total sales climbed 6.8 per cent year-on-year to Rs 1,240.88 crore in Q3 FY24 as compared to Rs 1,161.44 crore in the corresponding quarter of the last year.
As per the regulatory filing, its total expenses for the third quarter of FY24 stood at Rs 1,189.96 crore as against the total expenses of Rs 1,075.66 crore in Q3 FY23.
Kavindra Mishra, Executive Director and CEO, Shoppers Stop, said, “With considerable slowdown on the discretionary spending, we have demonstrated notable resilience in these tough conditions.”
Mishra said, “Our company has delivered admirable financial results with a sales growth of 7 per cent despite muted consumer demand. And during the festive period, the sales grew by 9 per cent (LTL +5 per cent). Average Transaction value grew by 6 per cent driven by premiumization and Items per Ticket grew by +5 per cent.”
On some of the outliers for Q3, he said, “Our external brands both apparel and non-apparel have grown above average, with better yields on our KPI’s. Our Home Stop has turned around and had a growth of 10 per cent, with a sale of Rs 42 crore.”
Additionally, the company recorded a GAAP EBITDA of Rs 219 crore, compared to Rs 240 crore in FY23. Its EBITDA has been reduced due to a one-time revenue of Rs 17 crore from other sources in FY23, and it has taken a provision for obsolescence of about Rs 9 crore during the quarter.
“We have observed that despite the overall muted market conditions our customers have upped their spends on the differentiated mix of premium brands and experiences across various categories wherein SSL is a destination,” Mishra added.
