Retail chain Shoppers Stop reported a consolidated net profit of Rs 77.32 crore for the third quarter ended December 2021. The company had posted a net loss of Rs 25.11 crore in the October-December quarter a year ago, said Shoppers Stop in a regulatory filing.
Its revenue from operations was up 33.82 percent at Rs 958.11 crore during the period under review as against Rs 715.97 crore in the corresponding quarter of the previous fiscal. According to the company, it has returned to “profitability” with a zero net debt.
Shoppers Stop total expenses were at Rs 905.14 crore, up 16.23 percent in Q3/FY 2021-22, as against Rs 778.78 crore.
Venu Nair, MD, and CEO, Shoppers Stop said, “We are witnessing positive signs from a strategy that we initiated in the last 2 years. As the fashion and beauty retail is seeing encouraging early trends from the Wardrobe Reboot, we are rightly poised to capture the pent-up demand.”
Customer sentiments are extremely positive owing to the double vaccination, lesser restrictions, and an overall improvement in safety protocols, leading to increased customer footfalls, he said.
“The company has seen a sustained demand during the festive period and the marriage season in October and November. We have witnessed a high customer spend and a higher Average Transaction Value (ATV). While Omnichannel is here to stay, our present online contribution gives us immense headroom to grow,” he added.
Over the outlook, the company said it is encouraged by the strong rebound and expects an accelerated growth trajectory now, driven by a robust recovery from the lockdown blues, accelerated small size store expansion, growth in the private-label mix, and an increased focus on high growth beauty business.
“The third wave may cause a small blip in the growth trajectory. Given the underlying business fundamentals, the enhanced digital capabilities, and the balance sheet strength, Shoppers Stop is well poised to embark on a new wave of growth and create value for all stakeholders, “
Shoppers Stop operates 83 department stores in 45 cities. It also operates 11 premium home concept stores, 129 Specialty Beauty stores of M.A.C, Estee Lauder, Bobbi Brown. Share of Shoppers Stop Ltd on Thursday settled at Rs 361.45 on BSE, up 3.17 percent from the previous close.
