Mumbai, July 19th, 2024: Shoppers Stop Ltd. a leading department store with premium fashion and beauty brands, has declared its results for the quarter ended 30th June 2024.
Management Comments:
Commenting on the Q1FY25 results, Mr. Kavindra Mishra, Managing Director and CEO, Shoppers Stop Ltd, said, “The industry witnessed subdued consumption due to prolonged heat wave, elections, fewer weddings and inflation. The sales for the quarter stood at Rs 1034 Cr + 5% and EBITDA at Rs.146 Cr. This has impacted our Profits, however, we have strong recovery plan.
Some of our recovery plan include our continuous focus on premiumization, Investment in Marketing to improve Customer Entry, elevating our Customer experience through High End Coffee Shops in several stores, Increase in Personal Shoppers, particularly during our festive season, etc. We are also planning to close a few unviable stores and rationalize costs during the year.
During the quarter, specifically on our Strategic Pillars, our Loyalty Membership increased to 10Mn+ First Citizen customers. On private brand portfolio, we aim to provide aspirational fashion at affordable prices. Further we aim to drive higher growth in beauty through engagement, expression and education and expanding distribution portfolio.
On other KPI’s our Items Per Transaction (IPT) increase +2%, Average Transaction Value (ATV) +5% and Average Selling Price (ASP) +3%.
Performance of strategic pillars in Q1FY25:
First Citizen – Our First Citizen Members contributed 80% to overall sales, with 67% repeat and 13% new members. Our Premium Black Card members contributed 14% to the overall sales, an increase of +5% YoY. During the quarter, the Black Card renewal was at 76%. The customer engagement continued to be strong, with innovative master classes viz; Lipstick making, Watch assembling etc., Personalized campaigns saw a 4X response.
Private Brands – Private Brands sales were at Rs 151 Cr with an overall contribution of 12% to the Sales and 18% to apparel sales. We had Better full price Sell thru for SS24 range. Our Inventory reduced by Rs 21 Cr QoQ and Rs 65 Cr YoY.
INTUNE –We have added 9 stores during the quarter with 31 as on date, with a presence in 14 cities (5 during the quarter) We have a Full price Sell Thru at 75%+ in SS24. Our conversions are strong at 33%. We are planning to intensify Store openings from 60 to 80 in FY25.
Beauty – Beauty Sales at Rs 212 Cr grew by +5%, outperforming other segments with 17% contribution to overall sales. We have been building Beauty Eco Systems through customer engagements and in store experiences. This has further strengthened by 239K Makeovers, 182 Master Classes and Influencer led events and 4 Beauty Soiree events with HNI’s and influencers. During the quarter we launched 4 MAC Shop in Shops in Tier 2 cities.
Beauty Distribution – Beauty distribution business reported Rs 39 Cr sales with distribution network expanded to over 444 doors. With addition of 8 fragrance brands including “Armani” and “Ajmal” during the quarter, total brand portfolio expanded to 27 brands.
Store Expansion – The company launched 11 stores during the quarter (2 Department and 9 INTUNE) with a capex investment of Rs 45 Cr.