Shoppers Stop shares jump 15% after company reports its first profit in more than two years

• Shoppers Stop reported a consolidated revenue of ₹972 crore for the December quarter.
• The Indian department store chain noted that their return to “profitability” comes with zero net debt.
• Shoppers Stop’s sales have also grown by 34% in the festive season of October to December.

Shoppers Stop’s stock went up 15% on Friday morning after the company reported a profit for the first time in 10 months. The company’s shares were trading at ₹417 at 9:49 a.m., on January 21.

The Indian department store chain — which sells everything from apparel to cosmetics — reported a consolidated revenue of ₹972 crore for the December quarter (Q3 of fiscal year 2022). Its profit also went up to ₹77 crore from ₹25 crore loss in the same quarter a year ago.

The company noted that their return to “profitability” comes with zero net debt.

"We are witnessing positive signs from a strategy that we initiated in the last 2 years. As the fashion and beauty retail is seeing encouraging early trends from the Wardrobe Reboot, we are rightly poised to capture the pent-up demand," Venu Nair, the managing director and chief executive (CEO) of Shoppers Stop, said.

He also mentioned that the customer sentiment is positive due to the double vaccinations, fewer COVID-19 related restrictions and an overall improvement in safety protocols.

Shoppers Stop’s sales have also grown by 34%, compared to last year, in the festive season of October to December.

The average transaction value (ATV) — average amount that a consumer spends in a single transaction — increased by over ₹500 in the last one year. Meanwhile, the company’s average selling price (ASP) increased to nearly ₹1,500.
Source: Shoppers Stop earnings

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