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.
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.
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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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