Shoppers Stop@Rs 1241 Cr Q1 Revenue

Shoppers Stop reports highest Q1 revenue of Rs 1241 Cr and EBITDA of Rs 58 Cr in Q1FY24

• Reports PBT of Rs.19 Cr in Q1 FY24; PAT at Rs 13 Cr
• Brands premiumization across categories resulted into strong Average Transaction Value growth of 8%
• Capex investment of Rs 43 Cr

• • Added 1 HomeStop and 6 Beauty stores
  • 5 Department stores under fit-out
  • Renovated 3 Department and 1 HomeStop Stores

• Shoppers Stop launched “Fashion For All” format under the brand “Intune”, which is 100% private brand. Opened 3 stores-2 at Hyderabad and 1 at Dombivali (Mumbai), 3 stores under fit out
• Beauty remained fastest growing segment recording sales of Rs 216 Cr, +13% YoY

Mumbai, July 24, 2023: Shoppers Stop Ltd. one of India’s leading premier fashion and beauty brands, has declared its results for the quarter ended 30^th June 2023, for the fiscal year 2023-24.

Key financial highlights for Q1 FY24

Management Comments:

Venu Nair, MD & CEO at Shoppers Stop, commented on the Q1 FY24 results, “Retail Sector is moving towards normalcy, with Beauty & non-apparel categories seeing strong growth. However, Apparel segment is witnessing moderation, and the operating environment remains challenging. In this context we have delivered a resilient and competitive performance. Our business model and its strategic pillars are driving sustainable growth. As a result, our revenue for Q1FY24 has grown by 4% compared with Q1FY23. We continue to revamp our older stores to upgrade their look and feel, offering fashionable brands for all age groups and customers. Our strategy of democratization of beauty for all segments of customers has driven growth. The 3P customer centric strategy about personalization, premiumization and private label has, resulted in Increased Average Transaction Value (ATV) Average Selling Price (ASP) by 8% and 5%.

“On the overall store expansion strategy, Shoppers Stop will open 12 new Department stores in 7 new cities by the end of FY24, apart from 15 Beauty stores. Recently, we launched “Intune” a “Fashion For All” format, again one of the strategic initiatives to cater to the Young Families. We launched 3 stores, 2 at Hyderabad and 1 at Dombivli (Mumbai) and another 3 stores are under fit out.”

“Our customer engagement strategy through various offline and online activations like beauty makeovers, End of Season Sale (EOSS) witnessed a rebound of customers footfalls to our stores resulting in higher traction. For a more personalized experiences through AI, we have introduced ‘Virtual Try On and Skin Analyzer’ at SSBeauty stores for virtual try on make-up experience.”

Performance of strategic pillars in Q1FY24:

• First Citizen Loyalty Customers continue to choose us as their preferred brand of choice for their fashion and beauty needs. First Citizen base expanded to 9.2Mn loyal customers and contributed to 80% of offline sales and 42% of online sales. For our premium Black card members, the Average Transaction Value (ATV) was 2X and members spend was 4X of the First Citizen. We received 2X campaign response from our 450+ customer engagement activities with an increased ATV +26%.
• Private Brands – Private Brands Sales gave a contribution of 14% to the Sales and 21% on apparel. Indian wear category outperformed with “HAUTE CURRY” grew by 42% and “KASHISH” grew by 14%. Smart Casual wear for men under the brand “FRATINI” grew by 39%.
• Beauty – Beauty at Rs.216 Crs, grew by 13% contributing 16.4%. The strong customer engagement with 160K makeovers resulted into higher engagement and conversion. We have launched 23 new brands under the beauty category such as Kilian Paris, Lancôme, Olaplex, Farmacy etc. We introduced “Virtual Try On and Skin Analyzer” at SS Beauty store for virtual try on make-up experience, one of the unique propositions from Shoppers Stop to its customers.
• Store Expansion – We launched 1 HomeStop and 6 Beauty Stores in this quarter. We have 5 Department stores under fit-out and schedule to open this quarter. We renovated 3 departmental and 1 Homestop during the quarter. We also launched 3 Intune stores – 2 at Hyderabad and 1 at Dombivali (Mumbai) in this quarter.Our Capex investments were at Rs.43 Crs.

 Outlook

In the near-term, Retail Industry will continue to witness rebalancing of price-volume growth equation and a gradual recovery in consumer demand. In this environment we will continue to provide superior value to our consumers and invest behind our Stores/Brands. We remain focused on driving our long-term strategic priorities including expansion into newer markets and building distinctive capabilities for the future.

Note:

We have published a detailed Non-GAAP and GAAP Income Statement. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.

 Disclaimer

Certain statements in this release concerning our future growth prospects are forward‐looking statements within the meaning of

applicable securities laws and regulations, and which involve number of risks and uncertainties, beyond the control of the

Company, that could cause actual results to differ materially from those in such forward‐looking statements. These forward looking statements reflect the Company’s views at the time such statement were made with respect to future events and are not

a guarantee of future performance or developments. The Company does not take any responsibility for any interpretations/

views/commentaries/reports which may be published or expressed by any media agency, without the prior authorization of the

Company’s authorized personnel.

About Shoppers Stop Limited: Shoppers Stop Ltd. is the nation’s leading premier retailer of fashion and beauty brands established in 1991. Spread across 98 department stores, the Company also operates 7 premium home concept stores, 146 Specialty Beauty stores of M.A.C, Estée Lauder, Bobbi Brown, Clinique, Jo Malone, Too Faced, SS Beauty,3 Intune and 22 Airport doors, occupying area of 3.9 M sq. ft. Shoppers Stop is home to one of the country’s longest running and most coveted loyalty program ‘First Citizen’. The Company’s one-of-a-kind shopping assistance service, ‘Personal Shopper’ is revolutionizing the way Indian’s shop, bringing more value, comfort, and convenience to customer experiences. The brand’s diversified Omni channel offering spans over 800+ recognized and trusted brands across an incomparable range of products that together serve our overarching objective of delivering customer.

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Shoppers Stop reports highest Q1 revenue of Rs 1241 Cr and EBITDA of Rs 58 Cr in Q1FY24