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Shoppers Stop Q3 Profit Plunges 22-Fold Amid Flat Sales, Premium Push

Shoppers Stop reported a dramatic 22-fold decline in its Q3 net profit to just Rs 16.1 crore, despite a modest 2.6% increase in revenue to Rs 1,415 crore. The company cited a challenging consumption environment, a shift in the festive calendar, and uneven discretionary spending for flat overall sales. However, its premium brand portfolio showed resilience, growing 6% year-on-year and contributing 69% of total sales. The beauty segment also performed strongly with 14% sales growth, while the company expanded its store network and maintained stable net debt.

Key Points: Shoppers Stop Q3 Profit Crashes 22-Fold to Rs 16.1 Crore

  • Profit crashes 22-fold YoY
  • Revenue sees modest 2.6% rise
  • Premium brand sales grow 6%
  • Beauty segment sales up 14%
  • EBITDA margin contracts to 15.4%
2 min read

Shoppers Stop's Q3 profit crashes 22-fold to Rs 16.1 crore

Shoppers Stop Q3 net profit plummets to Rs 16.1 crore from Rs 352.2 crore YoY. Revenue up 2.6% as premium brands grow 6%.

"Overall sales remained flat... due to a shift in the festive calendar, uneven discretionary spending and high pollution levels in North India. - Shoppers Stop"

Mumbai, Jan 20

Multi-brand fashion retailer Shoppers Stop Limited on Tuesday reported a sharp fall in its net profit for the third quarter, even as revenue saw a modest increase amid a challenging consumption environment.

The company's net profit in Q3 fell steeply to Rs 16.1 crore, compared with Rs 352.2 crore in the same quarter last financial year -- marking a nearly 22-fold decline, according to its stock exchange filing.

Revenue during the quarter rose 2.6 per cent year-on-year to Rs 1,415 crore from Rs 1,379 crore in the corresponding period.

Operating performance also remained under pressure. EBITDA declined 11.1 per cent to Rs 217.8 crore in Q3, down from Rs 245 crore a year ago.

As a result, the EBITDA margin slipped to 15.4 per cent from 17.7 per cent in the same quarter last financial year.

Shoppers Stop said overall sales remained flat during the quarter due to a shift in the festive calendar, uneven discretionary spending and high pollution levels in North India.

Despite these headwinds, the company continued to strengthen its premium brand portfolio, which showed steady growth and increased its share in total sales.

Premium brands contributed 69 per cent of the company's total sales during the quarter and grew 6 per cent year-on-year, with like-for-like growth also at 6 per cent.

Core business sales stood at Rs 1,516 crore, largely unchanged from the year-ago period, as per its regulatory filing.

The beauty segment continued to perform well, with sales rising 14 per cent year-on-year to Rs 395 crore.

INTUNE sales recorded strong growth of 22 per cent to Rs 77 crore. Average transaction value and average selling price both increased by 7 per cent, while customer footfall rose 5 per cent on a like-for-like basis, marking the second straight quarter of growth.

During Q3FY26, the retailer expanded its presence by opening three new department stores, three INTUNE stores and one HomeStop store.

Capital expenditure for the quarter stood at Rs 35 crore, taking total capex for the year so far to Rs 89 crore.

The company also reduced its working capital during the quarter, while net debt remained stable at Rs 90 crore.

- IANS

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Reader Comments

P
Priya S
Honestly, not surprised. The last few times I visited Shoppers Stop, the experience felt dated compared to newer brands and online shopping. The beauty section is always buzzing though! Maybe they should double down on that and their premium lines. The core department store model needs a refresh. 💄
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Aman W
They're blaming pollution and festive calendar? Come on, every business faces these. The real issue is discretionary spending is down. When household budgets are tight, fashion is the first thing people cut. Hope the management has a better strategy than just opening new stores.
S
Sarah B
Some positive signs are there - footfall is up, beauty and INTUNE are growing strongly. The premium focus seems to be working. Maybe this quarter is a blip? Reducing working capital and stable debt is good financial management. Let's see the next quarter.
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Vikram M
Classic case of the Indian middle class tightening its purse strings. Inflation has hit hard. People are going to malls for AC and window shopping, not buying. Shoppers Stop needs more attractive promotions and maybe tie-ups with credit cards to boost sales.
K
Kriti O
Respectfully, I think the management needs to communicate more clearly. A 2.6% revenue rise with a profit crash means serious margin pressure. What exactly are they doing about it? The shareholder filing feels like it's hiding behind external factors. Transparency is key.

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