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
Conference Call with Shoppers Stop Management and Analysts on Q2FY24 Performance and Outlook. Listen to the full earnings transcript.
Department Stores company Shoppers Stop announced Q2FY24 results: 1. Sales Performance: - Shoppers Stop reported revenue of Rs 1,025 crore in Q2FY24, a 2% growth compared to the previous year. - The company's sales were flat at Rs 1,271 crore in Q2FY24, due to the combination of shifting of Pujo and softer demand. - Sales in the beauty category outperformed with a 6% growth, led by fragrance with a 20% increase. 2. Strategic Pillars: - First Citizen loyalty program: First Citizen members contributed 77% of overall sales, with 64% being repeat members and 13% new enrollments. - Private Brands: Private brand sales reached Rs 184 crore, with a contribution of 14% to total sales. The Indianwear segment showed strong growth of +38%. - Beauty: Beauty sales amounted to Rs 197 crore, contributing 16% to overall sales. The category saw strong engagement with 240k makeovers and a 56% conversion rate. - Intune: The value fashion store, Intune, opened 4 stores during the quarter and generated sales of Rs 8 crore. Initial customer feedback has been positive. 3. Financials: - EBITDA for Q2FY24 was at Rs 170 crore, compared to Rs 175 crore in Q2FY23. - Gross margin was at 40.7%, slightly down from the previous year's 41.2%. - Net profit was impacted by muted demand in apparel, resulting in a PAT of Rs 2 crore. Kavindra Mishra, Executive Director and CEO, Shoppers Stop, stated, "Shoppers Stop reported impressive financial results, despite challenging market conditions and shifting of Pujo from Q2 to Q3 this fiscal. We have witnessed a strong pick-up in the Beauty businesses and consistent performance from non-apparels. The premiumization has been sustained across categories resulting in 5% growth in Average Selling Price (ASP) and 1% growth in Items per Ticket (IPT) compared to the corresponding quarter of FY23. Net profits for the quarter were affected due to muted demand in Apparels, partially offset by growth in Non-Apparels. As we enter the Festive Season, we anticipate a rebound in discretionary spending, propelling the company's growth trajectory further in the second half." Result PDF