Shoppers Stop (SHOPERSTOP) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 sales reached INR 1,260 crore (non-GAAP) and ₹1,034 crore (GAAP), up 2%-5% year-over-year, with muted growth due to subdued demand from fewer wedding dates, prolonged election season, and heatwave impacts.

• Premium brands' contribution rose to 57% of sales, and the First Citizen loyalty program surpassed 10 million members, contributing 80% to sales.

• Beauty segment outperformed with 5% growth, led by fragrances (+19%), and INTUNE reported ₹35 crore in sales with positive store EBITDA.

• Store expansion continued with 11 new stores in Q1, including 9 INTUNE stores, expanding into 5 new cities; INTUNE store count reached 31.

• Financial statements for Q1 FY25 were prepared in accordance with Indian Accounting Standards and reviewed by statutory auditors.

Financial highlights

• GAAP net revenue grew 5% year-over-year to ₹1,034 crore; non-GAAP revenue up 2% to INR 1,260 crore.

• Consolidated net loss for Q1 FY25 was ₹22.72 crore, compared to a net profit of ₹14.49 crore in Q1 FY24; EBITDA margin fell to 14.1% from 18.3% year-over-year.

• Inventory reduced by ₹21 crore sequentially and ₹65 crore year-over-year, improving working capital.

• Gross margins remained flat versus FY24; private brand trading margins rose by 1 percentage point but offset by mix.

• Cost increases were primarily due to new stores and tech investments, with overall costs up 10% year-over-year.

Outlook and guidance

• Expecting mid-single digit EBITDA margin for FY25, with improvement anticipated in FY26 as store rationalization and premiumization strategies mature.

• Anticipate stronger demand in H2 FY25, supported by festive and wedding seasons, better monsoon, and favorable budget.

• Plans to intensify INTUNE store openings (targeting 75-80 in FY25), close unviable stores, and invest in marketing and customer experience.

• Beauty segment guided for 12%-15% growth in FY25, with new prestige brands to accelerate growth.