15 August 2020 Shoppers Stops (SHOP) 1QFY21 revenues tanked 93.5% YoY (40% miss) due to store closures. However, better-than-expected cost control measures with 45% reduction in operating expense restricted EBITDA loss to INR1b (v/s est. INR1.1b and INR1.4b profit in 1QFY20). Despite outstanding cost rationalization, we have cut FY21 EBITDA by 37%, due to 10% revenue cut given the prolonged recovery expectation and lower gross margin. We have cut FY22E EBITDA marginally by 4%, led by revenue cut. Revenues plunged 93.5% YoY to INR539m (40% miss). Gross margin dropped 970bp to 32.1%. The revenue decline was due to complete store closures in Apr-May20 and partly in Jun20. Owing to the lockdown-led restrictions, SHOPs stores operated at 17.6% capacity in 1QFY21.