Shoppers Stop Ltd. (NSE: SHOPERSTOP | BSE: 532638) reported like-to-like growth in sales at 5.2% Y-o-Y. The company posted an EBITDA of INR 50.1 Cr in the quarter, up by 15.4% owing to significant operational efficiencies.
Commenting on the financial performance of the company, Mr. Rajiv Suri, Customer Care Associate, Managing Director & Chief Executive Officer, Shoppers Stop Ltd. said “Whilst the country’s economic growth has slowed down in overall consumption, impacting primarily agriculture, retail and manufacturing, Shoppers Stop achieved a mid-single digit 5.2% like-to-like sales growth, in line with our expectations.
Our Personal Shopper service, the first-of-its-kind in India is gaining rapid momentum as customers embrace the delightful shopping experiences. This differentiated service has propelled a record number of new First Citizen member enrollments 2.64L (up 47% vs LY Q1) which further establishes customers’ affinity to Shoppers Stop. We continue to build on our strong platform of celebrating Women with our exiciting campaigns, product assortment and constantly innovating on our beauty offerings including launching India’s first truly luxury Beauty concept store, Arcelia. We continue to invest in our Private Brands, design studio, sampling units and testing labs that are now operational. We expect to see a positive impact in our collection range from the coming seasons.”
The company accelerated it’s journey towards digital transformation for speed and higher agility and partnered with TCS to implement SAP which is expected to be fully operational by beginning of next year. The company is focused on investing in digitization, innovating with new retail formats, renovating existing stores and expanding footprint to enrich the shopping experience for customers.
During this quarter, the company added 1 department store at Guwahati, 4 MAC stores and launched a new luxury multi-brand beauty store concept “Arcelia” at the GVK Mall, Hyderabad. Arcelia aims to redefine beauty shopping by enhancing the ‘experiential quotient’ in-store for luxury brands in skincare, colour cosmetics, fragrances and accessories. The total footprint stands at 83 department stores across 40 cities and 120 beauty doors in India.
Shoppers Stop strategy and strengths are accentuated by one of the country’s longest running and most coveted loyalty program “First Citizen”. This program was launched in 1994 and today boasts of 6.3M members, contributing 82% of the sales revenue in Q1 FY20.
Financial: Note on IND AS 116
The Ministry of Corporate Affairs (MCA) has mandated a new Accounting Standard AS 116 for accounting the Lease Contracts. A detailed working has been included in our Quarterly Performance presentation uploaded in our corporate website.
|Rs. In Crs.||Non-GAAP||GAAP|
|Revenue from Operations||1099.5||+4.9% YOY||832.4||+0.7% YOY|
|EBITDA||50.1||+15.4% YOY||140.6||+189.1% YOY|
|First Citizens||6.32M 264K members added in the quarter|
|Stores added||Shoppers Stop 1, MAC 4 and 1 Arcelia|
|Total Retail Area||4.24M Sq. ft.|
We have published a detailed Non-GAAP and GAAP Income Statement. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.