Shares of Shoppers Stop climbed as much as 10.8% on Wednesday to Rs 688 on the BSE after the department store chain posted a nearly 41% year-on-year (YoY) rise in quarterly profit, after two straight quarters of loss, driven by strong demand for premium products such as watches and perfumes during the festive season.For the third quarter ending December 31, Shoppers Stop posted a consolidated net profit of Rs 522.3 million, compared to Rs 368.5 million in the same period last year. This marks a strong recovery following two consecutive quarters of losses.The festive season, particularly from October to December, saw a surge in spending on beauty and lifestyle products, a key period for retailers, which accounts for a large portion of their annual sales, the company said. Despite ongoing inflationary pressures, premiumization has continued to drive growth, with high-end categories performing well.The company saw an 11% rise in revenue from operations, reaching Rs 13.79 billion. Premium products contributed 64% of the total revenue for the quarter, a 9% increase from the previous year. Categories such as watches, handbags, and fragrances led the charge in this growth.Shoppers Stop also expanded its footprint, opening 16 new stores, including 9 INTUNE outlets, 6 SS Beauty stores, and 1 department store, with a capital expenditure of Rs 53 crore. The company expects premiumization to remain a key growth driver through Q4 and into FY26. Additionally, the strong wedding season beginning in mid-January is expected to further boost sales.Analysts remain optimistic, with an average target price of Rs 767 for Shoppers Stop's stock. Out of 10 analysts, 5 recommend a buy, 2 recommend a hold, and 2 suggest a sell.Also read | Goldman Sachs analysts answer 5 investor questions before Union Budget(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
- News Source Indiatimes (Click to view full news): CLICK HERE
0 Comments:
Leave a Reply