Shoppers Stop shares were up 4.7% on Thursday afternoon after the company reported a quarterly profit, benefiting from higher margins from private-label clothing.
What Happened? The department store operator reported a profit of ₹14.26 crore for the quarter ended March 31. A year ago, the company incurred a loss of ₹15.85 crore.
The company benefited from strong demand for beauty products and higher margin private-label clothing, as high-income shoppers splurged on clothes and accessories during the wedding season between January and March. Cooling inflation and some softening in raw-material costs also helped.
The company’s average selling prices rose by 9%, and its revenue stood at ₹924 crore, up nearly 30% from a year ago. Shoppers Stop’s managing director and chief executive, Venu Nair, said in a statement that this was the highest sales and sales growth, with all key performance indicators consistently improving.
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Revenue for Shoppers Stop’s beauty segment, which includes brands like L’Oreal, Clarins, and Earthi, as well as its private label Arcelia, grew 29% to ₹197 crore. This is compared to 18% growth in the previous quarter.
The company has also been focusing on private-label apparel to drive up its margins. Revenue from this business, which includes brands such as STOP, Fratini, and Bandeya, grew 35% to 1.58 billion rupees, compared with 23% growth in the previous quarter.
As of March 31, the company had 142 beauty stores and 98 department stores across the country.
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