India's Shoppers Stop FY25 sales up 5%, PAT plunges 92% YoY

On a non-GAAP basis, sales rose by 4 per cent to ₹5,427 crore (~$650.5 million). PBT declined by 77 per cent to ₹18 crore, while non-GAAP PAT declined 59 per cent to ₹23 crore, whereas non-GAAP EBITDA fell by 19 per cent to ₹183 crore, while gross margin also expanded by 60 basis points (bps) to 37.7 per cent.

In the fourth quarter (Q4) of FY25, the company reported GAAP sales of ₹1,022 crore (~$122.5 million), registering a modest 2 per cent YoY growth. On a non-GAAP basis, sales rose by 4 per cent to ₹1,284 crore (~$154 million).

GAAP gross margin expanded significantly by 380 bps to 44.3 per cent, while non-GAAP gross margin improved by 210 bps to 38.8 per cent. GAAP EBITDA declined by 6 per cent to ₹187 crore, whereas non-GAAP EBITDA saw a 2 per cent YoY rise to ₹38 crore.

GAAP PBT turned negative at ₹5 crore, down from ₹28 crore, while non-GAAP PBT declined by 72 per cent to ₹1 crore. GAAP PAT dropped sharply by 91 per cent to ₹2 crore, whereas non-GAAP PAT increased by 119 per cent to ₹9 crore.

During Q4 FY25, First Citizen members contributed 82 per cent to the company’s sales, with 69 per cent coming from repeat customers and 13 per cent from new members. Premium Black Card members accounted for 16 per cent of sales, reflecting a strong 38 per cent YoY growth. The company maintained robust customer engagement through continuous programmes and campaigns, with AI-personalised videos driving a 2x increase in conversion.

Private Brands recorded ₹145 crore in sales, contributing 11 per cent to overall sales and 16 per cent within the apparel segment, supported by improved productivity, higher intake margins, and a focus on digital prints and sustainable fabrics.

Store productivity remained a key focus for the retail group as 21 new stores were launched during Q4, including 5 department stores, 15 Intune outlets, and 1 beauty store, with a capital expenditure of ₹52 crore in Q4 and ₹192 crore for FY25.

“Shoppers Stop delivered consistent performance despite continued softness in demand and a challenging macro environment. We achieved 4 per cent revenue growth with 3 per cent like-for-kike growth (non-GAAP), marking the second consecutive quarter of LFL growth. Our two campaigns ‘India weds with Shoppers Stop’ a comprehensive wedding shopping experience, offering a wide array of wedding-related products and services and ‘Gifts of Love’ an initiative featuring a range of products designed to be given as gifts, celebrating love in various forms are successful,” said Kavindra Mishra, managing director (MD) and chief executive officer (CEO) at Shoppers Stop.

“Our strategy of premiumisation continues to yield strong results, with premium brands contributing 65 per cent of total sales, +7 per cent YoY. This emphasizes our position as a destination of choice for modern Indian consumers seeking aspirational and world-class experiences. Our First Citizen loyalty program continues to be a cornerstone of our success, driving 82 per cent of sales with growing repeat engagement,” added Mishra. “Despite the gradual demand recovery, we are optimistic due to structural changes like premiumisation, customer engagement campaigns, and India's rising affluence and evolving consumer aspirations. We will continue to build strong momentum in premiumization, Beauty and value fashion Intune and focus on experiential retail, digital personalisation, expansion to drive sustainable growth in FY26 and beyond.”

ALCHEMPro News Desk (SG)