India's Shoppers Stop holds steady in Q3 with $144.1 mn revenue

The company navigated a challenging consumption environment marked by festive calendar shifts, uneven discretionary demand and elevated pollution levels in northern India. Overall sales for the quarter remained largely flat year on year (YoY), even as the retailer continued to deepen its premium-led strategy.

The gross margin declined to 39.4 per cent from 40.7 per cent, while EBITDA fell 11 per cent YoY to ₹234 crore. Profit before tax declined to ₹32 crore from ₹68 crore, impacted by margin pressure and higher costs, including the impact of new labour codes. Profit after tax (PAT) stood at ₹14 crore, compared with ₹49 crore in Q3 FY25, Shoppers Stop said in a press release.

Premium brands accounted for 69 per cent of total sales, registering a 6 per cent YoY growth on a like-for-like basis. Core business sales stood at ₹1,516 crore, remaining flat compared to the same period last year. Intune recorded a 22 per cent increase to ₹77 crore. Average transaction value and average selling price both increased by 7 per cent, supported by improved customer quality, while customer entries rose 5 per cent on a like-for-like basis, marking the second consecutive quarter of growth.

For the nine-month (9M) period, GAAP sales rose 5 per cent YoY to ₹3,590 crore (~$392 million). EBITDA increased 3 per cent to ₹583 crore, though the company reported a profit before tax (PBT) loss of ₹22 crore and a PAT loss of ₹27 crore, largely due to employee benefit liabilities recognised under IND AS 19 following the implementation of new labour codes.

Strategic initiatives continued to gain traction during the quarter. The First Citizen loyalty programme contributed 84 per cent of total revenue, with the member base expanding to 13.3 million. The Premium Black Card segment increased its contribution to 21 per cent of total sales, reflecting higher engagement from affluent customers.

Private brands delivered steady performance, aided by new launches, including Fratini Girls, which received a positive response across eight stores and is slated for expansion to 60 locations. Intune posted YoY growth, although demand remained cautious.

On the expansion front, Shoppers Stop added three department stores, three Intune stores and one HomeStop store during Q3 FY26. Capital expenditure for the quarter stood at ₹35 crore, taking year-to-date (YTD) capex to ₹89 crore. The company reduced working capital during the quarter, while net debt remained stable at ₹90 crore, underscoring its focus on financial discipline.

“Q3 was marked by external factors such as festive calendar shifts and uneven consumption trends, which weighed on overall sales. However, we continued to make steady progress on our strategic priorities. Premium brands grew on a like-for-like basis and now account for 69 per cent of our total sales, reinforcing the direction of our portfolio shift,” said Kavindra Mishra, managing director and CEO, Shoppers Stop Ltd.

“The re-launch of our Juhu store as one of India’s most premium experiential retail destinations reflects our long-term commitment to differentiated customer experiences. While discretionary demand remained subdued for Intune, we are taking a calibrated approach to strengthening the format through focused investments and measured expansion,” added Mishra.

Fibre2Fashion News Desk (SG)