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 strategic initiatives drove strong Q2 results, with core business returning to profit and departmental store like-for-like sales at a decade high. New businesses are in investment mode, incurring planned losses, while beauty distribution saw triple-digit growth. Double-digit growth is expected to continue into Q3.
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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-August but a strong September rebound, with premiumization and beauty segments driving growth. 25 new stores were added, and cost controls plus inventory reduction supported margin expansion. H2 is expected to deliver stronger sales and margin improvement.
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Q1 FY25 saw muted sales growth of 2% amid subdued demand, but premium and beauty segments outperformed, and INTUNE expansion accelerated. EBITDA margins declined due to fixed costs and new stores, but mid-single digit margin is targeted for FY25, with optimism for H2 recovery and long-term growth.