Conference Call with Shoppers Stop Management and Analysts on Q3FY24 Performance and Outlook. Listen to the full earnings transcript.
Department Stores company Shoppers Stop announced Q3FY24 results: Financial Highlights: - Sales: Generated quarterly sales of Rs 1,207 crore, marking an increase of +7% YoY. - Gross Margin: Gross Margin stood at 39.7% in Q3FY24. - EBITDA (GAAP): EBITDA reached Rs 219 crore. - Non-GAAP Results: Compared to Q3FY23, the company demonstrated a Sales growth of 4% to Rs 1,484 crore. Performance by Segment: - Beauty Segment: Showed a strong performance with a +10% growth, led by Fragrance at +41% and Makeup at +6%. The beauty segment contributed 18% to the overall sales mix. - Private Brands: Achieved Rs 189 crore in sales with a 13% overall sales contribution and 19% contribution to apparel sales. Women's Indian Wear within this segment saw a +7% increase. - Intune Stores: Added 4 new stores during the quarter with a full price sell-through of 65% and a kidswear mix at 27%. Store Expansion: - Added 13 new stores including 4 Department, 4 Beauty, 4 Intune, and 1 Airport store. - Invested Rs 51 crore for expansion during the quarter with a total year-to-date capex of Rs 162 crore. Loyalty Program and Customer Engagement: - First Citizen Members: Contributed 78% to overall sales with 65% repeat and 13% new members. Premium Black Card members contributed 13% to the overall sales, up by 18% YoY. - Customer Events: Held 118 customer events across all stores for an enhanced shopping experience. Beauty Distribution: - Sales: The beauty distribution business recorded Rs 39 crore in sales with the distribution network expanded to over 334 doors. Balance Sheet: - The company remains debt-free with a net cash surplus of Rs 40 crore. Commenting on the Q3FY24 results, 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. Our Company has delivered admirable financial results with a Sales growth of 7% despite muted consumer demand. And during the festive period, the sales grew by 9% (LTL +5%). Average Transaction value grew by 6% driven by premiumization and Items per Ticket grew by +5%. Some of the outliers for Q3 are, that our external Brands both apparel and non-apparel have grown above average, with better yields on our KPIs. Our Home Stop has turned around and had an impressive growth of 10%, with a sale of Rs 42 crore. We reported a GAAP EBITDA of Rs 219 crore vs Rs 240 crore in FY23. Our EBITDA has been lower due to a one-time Income of Rs 17 crore as other Income in FY23 and we have made provision for obsolescence of circa Rs 9 crore during the quarter. We have observed that despite the overall muted market conditions our customers have upped their spending on the differentiated mix of premium brands and experiences across various categories wherein SSL is a destination”. Result PDF