India's Shoppers Stop posts 83% drop in Q2 profit on weak demand

Shoppers Stop

18/10/2023 15:26

BENGALURU, Oct 18 (Reuters) - India's Shoppers Stop
 SHOP.NS  on Wednesday posted a 83.2% fall in second quarter
profit as the department store was hit by rising expenses and
weaker demand, with customers delaying purchases of clothes and
cosmetics due to a late festive season.
        The festive season in India - which started in September
last year - brings in the lion's share of retailers' annual
sales as customers splurge on new clothes, accessories and other
items. The 2023 season begins late October. 
  
    Shoppers' Stop said consolidated net profit came in at 27.3
million rupees in the three months ended Sept. 30 from 162
million rupees a year earlier, but added that the industry
expects demand to improve "materially" in the third quarter. 
    "As we enter the festive season, we anticipate a rebound in
discretionary spend, propelling the company's growth trajectory
further in the second half," Kavindra Mishra, Chief Executive
Officer of Shoppers Stop said.
    Shoppers Stop, which sells products ranging from Vero Moda
apparel to Michael Kors watches at its stores, said its total
expenses rose 5%. Revenue came in at 10.39 billion rupees, up
nearly 3% from a year ago.
    The department store operator continues to grapple with
challenges in smaller cities and faces competition from
'Centro,' owned by billionaire Mukesh Ambani's Reliance Retail
Ventures.
    Separately, the company has also approved an investment in
Pahadi Goodness upto 40 million rupees ($480,676.79) done by its
unit Global SS Beauty Brands.     


($1 = 83.2160 Indian rupees)

    

 (Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by
Nivedita Bhattacharjee)
 ((Navamya.GaneshAcharya@thomsonreuters.com; +91 8805175330 ;))