Shoppers Stop (SHOPERSTOP) Q4 08/09 earnings summary

Executive summary

• FY09 revenue reached Rs 13,441.35 million, up 16% YoY; standalone net loss was Rs 637.18 million versus profit of Rs 69.67 million in FY08.

• Same-store sales grew 1.2%, while chain-level sales increased 15.9%; lower footfalls and sales per sq. ft. were partly offset by stronger conversion and transaction value.

• A severe global slowdown prompted operational, organisational and financial measures from mid-year, including store closures and tighter working-capital management.

Financial highlights

• Standalone retail sales net of taxes were Rs 13,179.83 million, up from Rs 11,345.69 million; total revenue was Rs 13,441.35 million versus Rs 11,607.57 million.

• Standalone loss before tax was Rs 643.57 million; excluding the Rs 248.64 million Gateway impairment, loss before exceptional items was Rs 394.93 million.

• Consolidated net loss was Rs 636.51 million versus FY08 profit of Rs 26.48 million; consolidated total income was Rs 13,072.30 million.

• Gross retail turnover reached Rs 14,001 million, up 16%; gross margin value was Rs 4,380 million, up 15%.

Outlook and guidance

• Expansion plans continued, with two new flagship stores opened in Vashi and Jaipur and more than 219,000 sq. ft. of retail space added during FY09.

• The FY10 outlook cited early signs of economic recovery and continued potential in modern Indian retail; expansion was to continue while pursuing market opportunities.

• Priorities included improving customer benefits, merchandise, store experience and service standards, while sustaining the First Citizen loyalty programme.