Shoppers Stop Ltd. (Shoppers Stop) announced its Q1FY24 results on July 24, 2022. In Q1 FY24, Shoppers Stop reported a Profit Before Tax (PBT) of Rs. 19 Crores and a Profit After Tax (PAT) of Rs. 13 Crores.
The company achieved strong Average Transaction Value (ATV) growth of 8% by focusing on premiumization across various categories. They invested Rs. 43 crores in capital expenditure, which included adding 1 HomeStop and 6 Beauty stores, as well as renovating 3 Department and 1 HomeStop stores.
Shoppers Stop also launched the "Fashion For All" format under the brand "Intune," featuring 100% private brand products, and opened 3 stores with 2 in Hyderabad and 1 in Dombivali (Mumbai), with 3 more stores currently under fit-out. The Beauty segment experienced significant growth, recording sales of Rs. 216 crores, a 13% YoY increase.
The Non-Apparel category witnessed a growth of +13%, driven by significant increases in the travel and luggage segment (+50%) and the watches segment (+9%). The Beauty Category also performed well with a growth of +13%, particularly led by a strong performance in the Fragrance Category (+16%). The company engaged effectively with customers, conducting 160k Makeovers, contributing to the positive customer experience.
The First Citizen loyalty program played a crucial role, accounting for 80% of the total mix, with 67% of the members being repeat customers. The company achieved an 8% increase in the Average Transaction Value (ATV), marking 13 consecutive quarters of growth. The Average Selling Price (ASP) also rose by 5%, primarily attributed to the success of premiumization strategies.
Additionally, the company launched the "Fashion For All" brand called "Intune" and expanded its reach by opening three new stores, two in Hyderabad and one in Dombivali.
Venu Nair, MD & CEO at Shoppers Stop, commented on the Q1FY24 results, “Retail Sector is moving towards normalcy, with Beauty & non‐apparel categories seeing strong growth. However, Apparel segment is witnessing moderation, and the operating environment remains challenging. In this context we have delivered a resilient and competitive performance. Our business model and its strategic pillars are driving sustainable growth. As a result, our revenue for Q1FY24 has grown by 4% compared with Q1FY23. We continue to revamp our older stores to upgrade their look and feel, offering fashionable brands for all age groups and customers. Our strategy of democratization of beauty for all segments of customers has driven growth. The 3P customer centric strategy about personalization, premiumization and private label has, resulted in Increased Average Transaction Value (ATV) Average Selling Price (ASP) by 8% and 5%.
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