29 April 2023, Mumbai
Shoppers Stop, the leading department store operator, reported a quarterly profit of INR 14.26 crore for the period ended March 31, 2023, as compared to a loss of INR 15.85 crore during the same period last year.
The company attributed this to strong demand for beauty products and private-label clothing from high-income shoppers, who splurged on clothes and accessories as they resumed their pre-pandemic lifestyles during the wedding season between January and March.
Cooling inflation and softening raw material costs also helped the company achieve higher profits.
Shoppers Stop's revenue for its beauty segment, which includes brands like L'Oreal, Clarins, Earthi, and its private label Arcelia, grew by 29% to INR 1.97 billion, compared to 18% growth in the previous quarter.
The company has been focusing on private-label apparel, which includes brands such as STOP, Fratini, and Bandeya, to increase its margins. Revenue from this segment grew by 35% to INR 1.58 billion, compared to 23% growth in the previous quarter.
The company's average selling prices rose by 9%, while revenue stood at INR 9.24 billion, up nearly 30% from a year ago.
The CEO and Managing Director of Shoppers Stop, Venu Nair, stated that this is the highest sales and sales growth, with all key performance indicators consistently improving. As of March 31, 2023, the company had 142 beauty stores across the country, compared to 98 department stores.
