Shoppers Stop on Wednesday posted an 83.2 per cent fall in second-quarter profit as the department store was hit by rising expenses and weaker demand, with customers delaying purchases of clothes and cosmetics due to a late festive season.
The festive season in India – which started in September last year – brings in the lion’s share of retailers’ annual sales as customers splurge on new clothes, accessories and other items. The 2023 season begins in late October.
Shoppers Stop said consolidated net profit came in at Rs 2.73 crore in the three months ended 30 September from Rs 16.2 crore a year earlier, but added that the industry expects demand to improve “materially” in the third quarter.
“As we enter the festive season, we anticipate a rebound in discretionary spend, propelling the company’s growth trajectory further in the second half,” Kavindra Mishra, Chief Executive Officer of Shoppers Stop said.
Shoppers Stop, which sells products ranging from Vero Moda apparel to Michael Kors watches at its stores, said its total expenses rose 5 per cent. Revenue came in at Rs 1,039 crore, up nearly 3 per cent from a year ago.
The department store operator continues to grapple with challenges in smaller cities and faces competition from ‘Centro,’ owned by billionaire Mukesh Ambani’s Reliance Retail Ventures.
Separately, the company has also approved an investment in Pahadi Goodness up to Rs 4 crore done by its unit Global SS Beauty Brands.
