by Priya Jadhav
– Beauty outperformed with +6% growth led by Fragrance +20%; Contribution to Total Sales 16%
– Beauty Distribution network expanded to 292 Doors, added Skincare brand “FRE” and Makeup range from “Prada” and “Valentino”
– Private brand Mix at 14% and apparels Mix at 21%, Last Year levels sustained
– Investment in growth continues with Capex of Rs 46 Crs,added 4 Department, 3 Beauty and 4 Intune stores during the quarter
Mumbai, October 18, 2023: Shoppers Stop Ltd. one of its India’s leading premier fashion and beauty brands retailer,has declared its results for the quarter ended 30th September2023.
Key financial highlights for Q1 FY24
^Includes Rs.5 Crs provided for stocks damaged under fire in Delhi, though confident of receiving nearly full amount from Insurance co
Management Comments:
Commenting on the Q2FY24 results, Mr. Kavindra Mishra, Executive Director and CEO, Shoppers Stop Ltd, said, “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 into 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 spend, propelling the company’s growth trajectory further in the second half. We remain committed in enhancing the value proposition, strongly believe in ensuring an elevated shopping experience to our customers besides improving our operational efficiency. We continue to focus in pursuing our Strategic Pillars through expansion of new stores, increasing our loyal members, increasing our contribution on both Private and Beauty verticals. The growth prospects of both the Indian economy and the fashion apparel expected to be positive and we are determined to leverage our robust brand portfolio to drive consistent, sustainable growth.
Performance of strategic pillars in Q2FY24:
– First Citizen Loyalty Customers – Our First Citizen Members contributed 77% of the overall sales, out of which 64% were repeat and 13% New members. The Unique members shopped during the quarter increased by 3%. For our premium Black card members, the Average Transaction Value (ATV) was 2X and members spend was 4X of the First Citizen
– Private Brands – Private Brands sales were at Rs 184 Crwith contribution sustaining at Last year levels of 14% to the total Sales and 21% on the apparel’s sale. Indian wear continues strong growth trajectory. As part of Festive preparedness, added newer ranges for the Wedding/festive Season. Launched “Sanya X Fratini”Campaign with Bollywood actress Sanya Malhotra.Campaign “Sanya X Kashish” for Women's wear is being launched in October
– Beauty – Beauty category Sales were at Rs.197 Crs, remained as the fastest growing category contributing16% to the overall sales with Fragrance growing by +20%. Our renewed customer engagement with 240K makeovers activities generated Rs 42 Cr of revenue at 56% conversion ratio
– Intune - We launched INTUNE, a value Fashion Store on June 2, 2023. With 100% in-house assortment, INTUNE brings to the fore fresh, quality fashion for the cool-spirited customers at shockingly accessible prices. We have opened 6 Stores as on date (4 during the quarter) and sales during the quarter is Rs.8 Crs with Sales per sq ft circa Rs.14,000. The initial customer feedback has been extremely positive
– Beauty Distribution – Our 100% subsidiary Global SS Beauty Brands Limited, has reached breakeven in the last quarter itself, Sales of Rs 23 Crs in this Qtr. We are extremely positive on the beauty distribution business with the launch of NARS and Armani in L’Oréal International Division in October
Store Expansion – The Company has been aggressive in its store expansion to increase its national footprint. We launched 4 department stores, 3 beauty stores and 4 Intune stores in this quarter. Overall, the company spent a capex of Rs 46 Crs. Our commitment to invest in New Stores will remain unchanged and plan to open 15 Departmental Stores during the year.
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