Shoppers Stop zooms up to 11% as firm reports profit in Q3 after loss in 2 quarters; check what aided earnings, other details

The department store chain said consolidated net profit rose nearly 41% to ₹52.23 crore ($6.03 million) for the third quarter ended December 31 from ₹36.85 crore registered a year ago.

The company also posted a profit fall in the first three quarters of fiscal 2024.

Spending on beauty and lifestyle products surged during India's festive season between October and December, which typically accounts for the bulk of retailers' annual sales.

Premiumisation is holding its ground amid sticky inflation across various consumer segments, the company said in a presentation to investors.

Shoppers Stop, which retails luxury brands such as Armani Beauty and Michael Kors, reported an 11% rise in revenue from operations to ₹1,379 cr ($159.33 million).

Premium categories contributed to 64% of overall revenue in the third quarter, up 9% year-on-year, said the company, with watches, handbags, and fragrance categories outperforming.

Last seen, the stock was trading at ₹660 on the NSE, up 6.42%.

In December 2024, global e-commerce giant Amazon exited Shoppers Stop by selling a 4% stake in the company for ₹276 crore through an open market transaction.

US-based Amazon, through its investment arm Amazon.com NV Investment Holdings, sold nearly 44 lakh shares, or a 4% stake, in Mumbai-headquartered Shoppers Stop, as per the block deal data on the National Stock Exchange (NSE).

The shares were offoaded at an average price of ₹627.60 apiece, taking the transaction value to ₹275.89 crore.

Shoppers Stop stock price trend

Shares of the company have slipped over 6% in the past 12 months. The stock hit a 52-week high of ₹943 on the NSE on September 12, 2024.

(With Reuters and PTI inputs)