Retail chain Shoppers Stop on Wednesday reported a decline of 83.14 per cent in consolidated net profit at Rs 2.73 crore in the second quarter ended September 30, on muted demand in the apparel business and offset by growth in non-apparel business.
The company had posted a net profit of Rs 16.20 crore in the July-September period a year ago, Shoppers Stop said in a regulatory filing.
Its revenue from operations during the first quarter of this fiscal was at Rs 1,039.12 crore, up 2.6 per cent against Rs 1,012.74 crore in the year-ago period.
The total expenses in the September quarter were at Rs 1,041.31 crore, up 5 per cent.
“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,” Shoppers Stop Executive Director and CEO Kavindra Mishra said.
Its “net profit for the quarter was affected due to muted demand in apparel, partially offset by growth in non-apparel,” he added.
During the quarter, it added 11 stores, which include – four Department, three Beauty and four Intune stores, the company said.
“Overall, the company spent a capex of Rs 46 crore. Our commitment to invest in new stores will remain unchanged and plan to open 15 Departmental stores during the year,” the statement said.
Over the outlook, Mishra said Shoppers Stop anticipates a rebound in discretionary spending, propelling the company’s growth trajectory further in the second half of the fiscal.
“The growth prospects of both the Indian economy and fashion apparel are expected to be positive and we are determined to leverage our robust brand portfolio to drive consistent, sustainable growth,” he said.
Meanwhile, in a separate filing, Shoppers Stop said Christine Kasoulis has resigned from the position of the Non-Executive Independent Director of the Company with effect from October 18, 2023, subsequent to her appointment as Director.
“… She has taken up full-time employment which has resulted in her getting preoccupied and other personal commitments,” it said.
Shoppers Stop operates 102 department stores, 7 premium home concept stores, 87 Specialty Beauty stores of M.A.C, Este Lauder, Bobbi Brown, Clinique, Jo Malone, Too Faced, SS Beauty, 6 Intune stores and 22 Airport doors.
Shoppers Stop shares on Wednesday settled at Rs 690.05 on the BSE, up 0.98 per cent from the previous close.
