Shoppers Stop EBIDTA increases by 37% and PBT by 347%

Shoppers Stop Limited (SSL) today reported earnings for the first quarter ended June 30, 2018 with a significant improvement in EBITDA and PBT/PAT.

During the quarter under review, Shoppers Stop increased the EBITDA by 37% from Rs.35.44 crores to Rs.48.63 crores, primarily due to a reduction in operating expenses. PAT grew by 363% from a loss of Rs.3.72 crores to a Profit of Rs.9.77 crores. (without including comprehensive income)

The revenue growth would have been ideally flat or marginally positive, however due to the reclassification post implementation of Accounting Standard 115, significant increase in tax rates in Q1 FY19 (GST regime) vs Q1 FY18 (VAT regime) and pre-GST sale in Q1 2017, Revenue declined by 12%.  They are strictly not comparable.

Key Financial Highlights:

  • Revenue from Operations: Rs.826.6 crores  
  • EBIDTA stood at Rs.48.6 crores (+37%)
  • PBT at Rs.15.22 crores a growth of 347% over Q1FY18 
  • 1.87 lakhs members added during the quarter to First Citizen Loyalty Program .

Key Operational Highlights

During this quarter, SSL added 1 Shoppers Stop store at OMAXE Mall Greater Noida and 2 M.A.C stores at Indore and Vadodara.

Driving ahead its successful Loyalty program, SSL continued to expand its membership base adding 1,86,811 new members to the First Citizen Loyalty Programme in Q1FY19. The program now has a total First Citizen base of 55.36 lacs members.

Speaking on the performance, Mr. Rajiv Suri, Customer Care Associate, Managing Director & Chief Executive Officer, Shoppers Stop Ltd. said, “Due to improved operational efficiencies and cost management, we have delivered significant improvement in EBITDA and PBT. Our Revenue would have been almost flat, but for the extraneous factors like reclassification under Accounting Standard AS 115, Significant increase in Taxes as we have shifted from VAT to GST and pre-GST sale in June 2017, our Revenue has declined. We will continue to keep our prime focus to engage customers through delightful shopping experiences and services. We’ve recently launched an extension to our Personal Shopper Program with the service now available at Home/ Office across Mumbai & Bengaluru stores”.

In this quarter, Shoppers Stop launched the first-of-its kind ‘Denim to Work’ campaign, a unique initiative to create a trend of owning the Denim to work space. The campaign focused on encouraging working professionals to include denims in their work wear wardrobes and empowered them to redefine the new codes of leadership towards building a fresh work culture.

Shoppers Stop and its retail invested companies operate the following number of stores/doors as on June 30th, 2018:

Fashion & Home Retailing:

  • Shoppers Stop – 83 stores in 38 cities
  • HomeStop –13 stores in 9 cities

Specialty Retailing:

  • M.A.C – 53 stores in 18 cities
  • Clinique – 30 stores in 14 cities
  • Estee Lauder – 8 stores in 6 cities
  • Bobbi Brown – 11 stores in 7 cities
  • Smashbox – 2 stores in 2 cities
  • Crossword (Book stores) – 83 stores in 34 cities

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