India · Delayed Price · Currency is INR Shoppers Stop Earnings Call Transcripts
Fiscal Year 2026
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Departmental store revenue surpassed INR 5,000 crore with record LFL growth and strong cash flow. Premiumization, non-apparel, and beauty segments drove performance, while store renovations boosted productivity. Focus remains on premium expansion, operational efficiency, and becoming debt-free by FY 2027.
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Q3 was impacted by muted demand and environmental factors, resulting in flat sales, but premiumization and non-apparel categories showed strength. Investments in technology and customer acquisition weighed on EBITDA, while inventory and debt levels improved. Management expects a turnaround and mid-teen growth in FY27.
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Premiumization and customer engagement drove strong Q2 and H1 FY2026 growth, with core business and beauty segments outperforming and new businesses showing early traction. EBITDA margin is expected to improve in H2, and store expansion is on track despite earlier delays.
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Departmental stores saw 5% like-for-like growth and improved margins, while Intune faced short-term losses due to expansion and discounting. Premiumization, beauty, and omnichannel investments are driving future growth, with robust expansion plans ahead.
Fiscal Year 2025
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Q4 FY25 saw 4% sales growth and margin expansion, driven by premiumization and strong loyalty programs. Departmental stores and beauty segments showed resilience, while Intune faced challenges but older stores performed well. FY26 outlook is positive with plans for expansion and reduced borrowings.
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Q3 saw 7% sales growth and 20% EBITDA rise, driven by premiumization, Beauty, and Intune expansion. Store rationalization is nearly complete, with minimal closures ahead. Guidance for 5% like-for-like growth in H2 and Q4 is maintained.
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Q2 FY25 saw muted sales in July and August but a strong recovery in September, with premiumization and beauty segments driving growth. The company plans to open 60–65 stores in H2, expects mid-single digit like-for-like growth, and targets improved margins and lower debt.
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Q1 FY25 saw muted sales growth of 2% amid subdued demand, but premiumization and loyalty programs drove resilience. INTUNE and Beauty segments remained EBITDA positive, with aggressive store expansion planned. Margins are expected to improve in H2, aided by festive demand.