In Friday’s trading session, the shares of India’s leading premier retailer of fashion and beauty brands fell by 6 percent on BSE to hit an intraday low at Rs. 771, after reporting financial results for Q1 FY24-25 with a net loss of Rs. 22.7 crores.
At 11:32 a.m., the shares of Shoppers Stop Limited were trading in the red at Rs. 787.25, down by 4.02 percent, as against its previous closing price of Rs. 820.2, with a market cap of Rs. 8,681.4 crore.
What’s the News:
The fluctuations in the share prices were observed after the company announced the financial results for Q1 FY24-25, through the recent filings with the stock exchanges on Thursday post-market hours.
The consolidated revenue from operations for Q1 FY24-25 stood at Rs. 1,069.3 crore, marking a 2.2 percent QoQ increase from Rs. 1,046.3 crore in Q4 FY23-24, and a 7.6 percent increase year-on-year from Rs. 993.6 crore in Q1 FY23-24.
Shoppers Stop reported a net loss of Rs. 22.7 crore in Q1 FY24-25 from a profit of Rs. 14.5 crore in Q1 FY23-24 and Rs. 23.2 crore in Q4 FY23-24.
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Further, on a year-on-year basis, the Earnings Before Interest, Taxes, Depreciation, and Amortisation, or EBITDA fell from Rs. 180 crore in Q1 FY23-24 to Rs. 146 crore in Q1 FY24-25, representing a decline of 19 percent.
Management Comments:
“The industry witnessed subdued consumption due to prolonged heat wave, elections, fewer weddings and inflation. The sales for the quarter stood at Rs. 1,034 Cr + 5% and EBITDA at Rs. 146 Cr. This has impacted our Profits, however, we have a strong recovery plan,” the company’s Managing Director and CEO commented.
The company’s recovery plan includes a continuous focus on premiumisation, increased investment in marketing to enhance customer entry, and the enhancement of customer experience through the introduction of high-end coffee shops in several stores, along with an increase in ‘Personal Shoppers’.
Additionally, the strategy also includes the closure of a few unprofitable stores and a focus on rationalising costs during the year.
Shareholding Pattern:
As per the shareholding pattern of June 2024, the Promoters hold a 65.58 percent stake in the company, Foreign Institutional Investors (FII) hold a 7.43 percent stake, while Retail Investors and Domestic Institutional Investors (DII) hold a 4.78 percent and 22.21 percent stake in Shoppers Stop, respectively.
According to the latest shareholding data available with the BSE, the foreign investor Amazon.com NV Investment Holdings LLC holds 43.9 lakh equity shares, or equivalent to a 4 percent stake, in the company.
Stock performance:
The stock has delivered positive returns of nearly 1.8 percent in one year, as well as around 13.5 percent returns in the last six months. So far in 2024, the shares of Shoppers Stop have given about 15.2 percent of positive returns.
About the company:
Established in 1991, Shoppers Stop Limited is engaged in the business of retailing a variety of household and consumer products through departmental stores.
Written by Shivani Singh
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