Shoppers Stop (SHOPERSTOP) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 saw muted sales in July and August due to early end-of-season sales, excess rains, and fewer wedding dates, but September showed a strong recovery with 12% sales growth and 9% like-for-like growth.

• Q2 FY25 revenue grew 2% YoY to INR 1,298 crores (Non-GAAP), with premium brands' contribution rising to 64% from 60% last year.

• Beauty segment outperformed, contributing significantly to profits and achieving 19% consolidated growth including subsidiary; sales reached INR 218 crores (+10% YoY).

• Opened 25 new stores in the quarter, including 19 Intune, 5 HomeStop, and 1 departmental store, with the 50th Intune store launched on October 1.

• Un-audited standalone and consolidated financial results for the quarter and half year ended September 30, 2024, were approved and released.

Financial highlights

• Q2 sales reached INR 1,296 crores, up 2% year-over-year; September sales up 12% with 9% like-for-like growth.

• Q2 FY25 Non-GAAP EBITDA fell 49% YoY to INR 21 crores; GAAP EBITDA down 8% to INR 157 crores.

• Consolidated revenue from operations for Q2 FY25 was ₹1,114.87 crore, up from ₹1,069.31 crore in Q1 FY25 and ₹1,039.12 crore in Q2 FY24.

• Working capital reduced by INR 30 crores, with private brand inventory down by INR 40 crores.

• Q2 FY25 Non-GAAP PAT at -INR 15 crores (vs -INR 22 crores GAAP), includes INR 2.1 crores provision for fire-damaged stock.

Outlook and guidance

• Expect mid-teen growth in October and mid-single digit like-for-like growth for the next six months.

• Plan to open 60–65 stores across all formats in H2 FY25.

• Non-GAAP EBITDA margins guided to mid-single digits for FY25, targeting high single digits next year.

• Retail demand expected to be buoyant in Q3/Q4, driven by wedding season and improved discretionary spend.

• Management expressed confidence in receiving insurance claim for the exceptional loss.