Shoppers Stop (SHOPERSTOP) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 saw muted sales in July and August due to early EOSS, excess rains, and lower discretionary spending, but September rebounded with 12% sales growth, especially in the East with 9% like-for-like growth.

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

• Beauty segment outperformed with Rs 218 Crs sales (+10% YoY), and private brands contributed Rs 156 Crs.

• Opened 25 new stores (19 Intune, 5 HomeStop, 1 departmental), with Intune reaching 50 stores and plans to hit 100 by year-end.

• 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 grew 12% with 9% like-for-like.

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

• 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 Rs 30 Crs in Q2; inventory down Rs 40 Crs YoY for private brands.

• Exceptional item of ₹2.05 crore in Q2 FY25 due to stock damage from fire; insurance claim filed.

Outlook and guidance

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

• 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; CapEx for the year projected at INR 200-240 crores.

• H2 expected to be much stronger in both sales and margins, with cost rationalization ongoing.

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