Shoppers Stop reported revenue of Rs. 916 Crs and EBITDA Loss of Rs.17 Crs in Q4FY20

Shoppers Stop Ltd. (NSE: SHOPERSTOP | BSE: 532638) reported Sales of Rs.916 Crs and EBITDA Loss of Rs.17 Crs in the quarter (Non-GAAP). GAAP adjusted; the turnover is Rs. 709 Crs and EBITDA (before exceptional item) of Rs.83 Crs.

The retail industry as a whole has been adversely impacted by the spread of COVID-19. The Company faces significant challenges due to COVID-19, which has impacted the operations of the Company adversely starting from the month of March 2020 onwards, particularly by way of store closures due to complete lockdown. The near-term impact is contingent on various external factors such as lifting the lock down, opening of Malls and customer confidence on discretionary spending.

Commenting on the quarterly performance of the company, Mr. Rajiv Suri, Customer Care Associate, Managing Director & Chief Executive Officer, Shoppers Stop Ltd. said, "This year and particularly this quarter have been unprecedented due to the impact of COVID-19. The year started with an exceptional pace of expansion and growth but closed on a sombre note as the world faced a one-ofits-kind crisis in the outbreak of COVID-19. The complete lockdown in March impacted the quarter performance as the full chain of 252 stores were shut down whilst all fixed costs remained in the books. We added 11 department stores 22 beauty stores and 5 Airport doors during this year, investing Rs.212 Crs. from our internal accruals to set us up for exponential growth in the coming years.

During the lockdown, we continued to engage with our First Citizen Customers, Employees and surrounding communities using our Personal Shoppers and social media platforms, which ensured a healthy exchange of ideas, knowledge and information.

Virtual sessions on DIY (Do It Yourself) in beauty, edutainment and fitness kept our audience engaged. As the brick and mortar stores shut down, we strengthened our e-commerce portal. We are following the guidelines of the Government and WHO, putting in place all the required safety measures while waiting to open all our stores soon."

The Company retains its purpose to be the most loved Shopping destination for the young Indian family and in turn helping communities to live and feel better. The Company has re-opened 50+ stores post lockdown and is actively engaged with our First Citizen customers both online and offline. The engagement across social media, e-commerce portal, website and App and Personal Shoppers has ensured a high brand recall. Investments are being made to sharpen our analytic capabilities, which will improve overall customer experience and personalization besides supporting our growth.

For the Quarter

Against a challenging Lockdown period, temporary store closures, strong base of Q4 FY19, and a subdued retail landscape, the Revenue growth was muted LTL (16%), though in January and February LTL growth was 2.4%. The company proactively increased its productivity and efficiencies by keeping the costs in control (LTL costs declined by Rs 16 Crs over last year).

The company has added 3 department stores and 6 beauty doors during the quarter taking the total footprint to 89 Department stores (net of 5 closures during the year) and 132 Beauty doors across 44 cities in India as at March 31, 2020. Our First Citizen Loyalty program contributed 79% (+5% Y-o-Y basis) of Revenue. The Beauty segment mix increased to 18% (+1% YoY). We launched Arcelia - the Premium Beauty Format store at Hyderabad Airport and have upgraded the beauty experience in existing two stores.

Shares of SHOPPERS STOP LTD. was last trading in BSE at Rs.184.9 as compared to the previous close of Rs. 182.55. The total number of shares traded during the day was 25737 in over 785 trades.

The stock hit an intraday high of Rs. 198.4 and intraday low of 180. The net turnover during the day was Rs. 4861816.

Source : Equity Bulls

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