Shoppers Stop Limited · NSE:SHOPERSTOP
Shoppers Stop — Q3 FY24 Earnings Presentation
48 slides from Shoppers Stop's earnings presentation, Jan 19, 2024
Slide 1: Exchange cover letter: Press Release and Investor Presentation
SHOPPERS STOP SEC/113/2023-24 January 18, 2024 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Fort, Bandra-Kurla Complex, Bandra (East), Mumbai 400 001. Mumbai 400 051. Stock Code : 532638 Stock Symbol : SHOPERSTOP Dear Sir / Madam, Sub.
Slide 2: Performance Highlights Q3 FY24
PERFORMANCE HIGHLIGHTS Q3 FY24 1
Slide 3: Key Highlights, Strategic Pillars, Financials
1 KEY HIGHLIGHTS 2 STRATEGIC PILLARS 3 FINANCIALS 2
Slide 4: Market Outlook
MARKET OUTLOOK Customer Industry Omni Channel Expansion ▪ Premium or ▪ Value Retail shifting from ▪ Omnichannel customers ▪ Global brands looking Aspirational brands Unorganized to tend to spend 3X more to join growth curve continue to outgrow, Organized, corroborated than single channel with India
Slide 5: Q3 Highlights
Q3 HIGHLGHTS – Sales Rs 1,484 Crs, +4% – Festive LTL growth 4% – ATV +6% (Rs 5,047 vs Rs 4,775), due to premiumization – Items per Ticket (IPT) +5% – First Citizen @ 78%, Repeat 65% /New 13% – Beauty outperformed +10%, led by Fragrance +41%; Make up +6%; Strong Customer engagement with 266K Makeover
Slide 6: Q3 in Numbers
Q3 IN NUMBERS (Non GAAP) Financials Revenue Rs 1,484 Crs +4% EBITDA Rs 91 Crs 6.9% of Sales PBT Rs 54 Crs 4.2% of Sales PAT Rs 40 Crs 3.1% of Sales Expansion – 13 Stores Opened 4 Department + 4 Beauty + 4 Intune + 1 Airport – Capex and Deposits Rs 51 Crs 5
Slide 7: YTD in Numbers
YTD IN NUMBERS (Non GAAP) Financials Revenue Rs 3,996 Crs +3% EBITDA Rs 189 Crs 5.4% of Sales PBT Rs 71 Crs 2.0% of Sales PAT Rs 51 Crs 1.4% of Sales Expansion and Renovation – 33 Stores Opened 8 Department + 15 Beauty/Others + 10 Intune – Renovated 4 Department + 1 Home Stop + 5 Beauty – Capex and
Slide 8: Quarterly Trend (Non-GAAP)
QUARTERLY TREND (Non-GAAP) (Rs in Crs) 1600 Sales +4% 600 Margin 40.0% 37.1% 1500 1400 1300 500 37.6% 37.3% 37.8% 39.0% 1200 38.0% 1100 400 1000 37.0% 900 1484 800 300 36.0% 700 1300 1430 474 484 600 500 1190 200 431 392 35.0% 400 34.0% 300 100 33.0% 200 100 0 32.0% 0 Q3FY20 Q3FY22 Q3FY23 Q3FY24 Q3F
Slide 9: Quarterly Trend (GAAP)
(GAAP) QUARTERLY TREND (Rs in Crs) 1600 1500 Sales 700 Margin 46.0% 1400 +7% 600 42.6% 39.7% 44.0% 1300 1200 500 40.9% 40.6% 1100 42.0% 1000 400 900 40.0% 800 700 300 600 1132 1207 462 480 994 424 38.0% 500 400 951 200 387 300 36.0% 100 200 100 0 34.0% 0 Q3FY20 Q3FY22 Q3FY23 Q3FY24 Q3FY20 Q3FY22 Q3F
Slide 10: Operational KPIs
OPERATIONAL KPIs (Offline Only) Items per Txn. (Nos.) 6500 6400 6300 ATV (Rs/-) 6200 6100 +6% 6000 5900 5800 5700 5600 5500 +5% 5400 5300 5200 5100 5000 4900 4800 4700 4600 45 00 4400 43 00 4200 4100 4000 3900 3800 3700 3600 3500 3400 3300 3200 3100 3000 2900 5047 2800 2700 4775 2600 2500 3.1 4345 2
Slide 11: Key Highlights, Strategic Pillars, Financials
1 KEY HIGHLIGHTS 2 STRATEGIC PILLARS 3 FINANCIALS 10
Slide 12: Surge in BTL and Premium Segments
Surge in BTL and Premium Segments Luxury Car Makers Stack up in India Mini, 2.1% Land Rover, 4.0% The India luxury watch market is India Luxury Hotel Market Jaguar, 1.0% Volvo, 5.2% projected to exhibit a growth rate (CAGR) 5 4.4 of 20.3% during 2023-2028 4 3 2.7 Audi, 14.0% Mercedez Benz, 44.1% Mar
Slide 13: Shoppers Stop leader in BTL and Premium Segment
Shoppers Stop leader in BTL and Premium Segment Market Where we are now ? Planned Journey Premium Brands @ 47% Contribution Premium & BTL Fashion Market sized at 55% Contribution from Premium Brand by $7.86 Billion FY25. SSL to Launch 4-5 Premium brands Our exclusive Black Card Membership Contributi
Slide 14: Strategic Pillars
STRATEGIC PILLARS Additions Q3 9.7M Rs 189 Crs Rs 262 Crs 13 Stores FIRST CITIZEN PRIVATE BRANDS BEAUTY EXPANSION 78% 13% 18% YTD 33 Stores SALES CONTRIBUTION 13
Slide 15: First Citizen
FIRST CITIZEN Sales contribution – Overall 78% (Incl. Repeat 65%) Black Card Members – Contribution 13% to Overall Sales – Sales Growth +18% – Black tier renewal +3% QoQ Beauty – FC Beauty contribution +12%; repeat members shopped +8% Customer Engagement – 2.5X higher response rate for AI personaliz
Slide 16: Private Brands
PRIVATE BRANDS Sales Rs.189 Crs – PB Contribution – Overall 13% – Apparels 19% Sales and Contribution % 17% 14% 14% – Women Indian Wear outperformed +7%; Volume +10% 13% 15% 11% 13% 11% – Sanya X Kashish campaign received strong traction; 9% – “Kashish” outperformed +18%; Volume +31% 201 189 7% 145
Slide 17: New Intune Stores
New Intune Stores 1. Trendset Mall, Vijayawada 2. Hennur Road, Bengaluru 3. Unicus Shyamal, Ahmedabad 4. Science City Road, Ahmedabad 16
Slide 18: Intune Business Update
INTUNE BUSINESS UPDATE Expansion – Added 4 stores during the quarter – Total 10 stores across 6 cities as on date – On track to open 14 stores during Q4 Key Insights – Strengthened position as a Kids First fashion brand – Strong acceptance from Families – Full Price Sell Thru at 65% – Festive range
Slide 19: Intune Business Update KPIs
INTUNE BUSINESS UPDATE KPIs − Sales of Rs 11 Crs ; YTD Rs 20 Crs − Store EBITDA Positive − ASP of Rs 450/- driven by Sharp pricing and Table offers − Healthy Items per Ticket (IPT) at 3.7 driving ATV of Rs 1,691/- INTUNE 18
Slide 20: Beauty
BEAUTY (Vs Q3 FY23) Beauty Business Network Offline Count Sales Rs.292 Crs. +23% Department stores 105 Rs.262 Crs. +10% (excl. Distribution) EBOs (incl. SSBeauty) 88 Shop-in-shop 57 – Customer engagement with 266K Makeovers, Distribution 334 – Conversion 49% and Sales generated Rs 46 Crs Online Shop
Slide 21: Beauty Key Collaborations
BEAUTY KEY COLLABORATIONS Key Campaigns; Strong traction +19% Dwarka, New Delhi Launched “Bath n Body” as Shop Launched “MyGlamm POUT” by in Shop in collaboration with Karan Johar from The Good Apparel group Glamm Group 20
Slide 22: Beauty Distribution
BEAUTY DISTRIBUTION Sales Rs.39 Crs (YTD Rs.77 Crs) − Distribution network expanded to 334 doors − Retailing brands across 17 different retailers − Brands portfolio expanded with onboarding; – Fragrance brand “Armaf” – Makeup brand “Soda Makeup” − Total Brand portfolio now consists of 18 Brands Vasa
Slide 23: SSBeauty @ T2 Int' Airport, Bengaluru
SSBeauty @ T2 Int’ Airport, Bengaluru Beauty Services Section Treatment room Hair Styling Nail Bar 22
Slide 24: HomeStop
HOMESTOP Sales Rs 42 Crs +11%; Store count 7 – Optimized store size to improve productivity – Strong customer response to assisted shopping, Personal shopper sales +24% – New Brands launched in experiential categories viz; Nautica (Bedding), Nurturing Green (Live Plants), Chumbak (Quirky Range), Lum
Slide 25: Expansion: Store Footprint
EXPANSION 233 Stores Store Footprint as on 31st Dec 23 4.1M sq.ft.# Format Store count Department Stores 105 Beauty Stores 88 Intune 10 Home Stop 7 Airport Doors 23 Investments (Rs In Crs) Q3 FY24 New Stores and Renovation 38 Technology/Others 3 # Carpet area Total 41^ 24 Excl. Store Deposits of Rs
Slide 26: Expansion Way Forward
EXPANSION Way Forward On course to meet the planned Store Expansion for FY24 Additions Opened in FY24 Area Store FY23 H1 H2 FY24 FY25 FY26 Total (Mn Sq FY26 YTD Q4 FY24 ft) Department 98 4 11 15 15 15 45 1.15 143 8 7 15 Beauty 85 9 7 16 27 27 70 0.05 155 13 3 16 SSBeauty 10 2 2 4 15 15 34 0.04 44 3
Slide 27: Dept Store @ Warangal
Dept Store @ SHOPPERS STOP 26
Slide 28: Dept Store @ Nexus Vijaya Forum, Chennai
Dept Store @Nexus Vijaya Forum, Chennai 27
Slide 29: Dept Store @ Ashirwad High Street, Surat
Dept Store @Ashirwad High Street, Surat 28
Slide 30: Dept Store @ Mittal Mall, Ajmer
Dept Store @Mittal Mall, Ajmer 29
Slide 31: Fashion Store @ T2 Int' Airport, Bengaluru
Fashion Store @ T2 Int’ Airport, Bengaluru 30
Slide 32: Beauty Stores @ Phoenix Mall of Asia, Bengaluru
Beauty Stores @ Phoenix Mall of Asia, Bengaluru 31
Slide 33: Key Highlights, Strategic Pillars, Financials
1 KEY HIGHLIGHTS 2 STRATEGIC PILLARS 3 FINANCIALS 32
Slide 34: KPI Performance – Q3
KPI PERFORMANCE – Q3 Vs Q3FY23 (Rs Crs) +4% (70 bps) (29%) Sales Gross Margin EBITDA* Non GAAP 1484 484 91 GAAP 1207 480 219 +7% (110 bps) (9%) *FY23 numbers include reversal of Interest on GST Rs.17 Crs in other income 33
Slide 35: KPI Performance – YTD
KPI PERFORMANCE – YTD Vs YTD FY23 (Rs Crs) +3% (40 bps) (30%) Sales Gross Margin EBITDA* Non GAAP 3996 1313 189 GAAP 3213 1312 569 +4% (60 bps) (3%) *FY23 numbers include reversal of Interest on GST Rs.17 Crs in other income 34
Slide 36: Financials Q3 FY24
FINANCIALS Q3 FY24 Particulars Non - GAAP Financials GAAP Financials Rs. in Crs. FY24 FY23 Gr% FY24 FY23 Gr% Gross Revenue 1484 1430 4% 1362 1278 7% Net Revenue 1306 1254 4% 1207 1132 7% Other Income* 21 32 -33% 3 24 -86% Total Revenue 1327 1286 3% 1210 1156 5% Margin 484 474 2% 480 462 4% Margin% 3
Slide 37: Balance Sheet
BALANCE SHEET Particulars (Rs. In Crs.) Dec’23 Mar’23 Net worth 830 765 Loan Fund 33 104 Total Liabilities 864 869 Fixed Assets + Lease Deposit 857 795 Investments 74 77 Inventory* 1745 1488 Other Assets 586 525 Net Cash Rs. in Crs Total Current Assets 2225 1883 Cash & Investments 73 Trade Creditors
Slide 38: Cash Flow
CASH FLOW Particulars Dec’23 Mar’23 Cash Profit from Operations (after tax) 185 321 Changes in Working Capital 59 -124 Cash generated from Operations 244 197 Fixed Assets /Reduction in Capex Creditors* -161 -191 Cash generated from Operations 83 7 Redemption of Investments (Net) 3 87 Cash post Inves
Slide 39: Way Forward
WAY FORWARD Demand Brands Continue to remain muted. Gradual recovery Focus on premiumization expected from FY25. Growth through focusing on Launch of exclusive brands within the Shoppers Premiumization and non-apparel categories Stop eco-system Stores Beauty Network expansion as per Schedule; explor
Slide 40: Annexures
ANNEXURES
Slide 41: Financials Q3 FY24
FINANCIALS Q3 FY24 Particulars Non GAAP GAAP Rs. in Crs. FY24 FY23 Gr% FY24 FY23 Gr% Gross Revenue 1484 1430 4% 1362 1278 7% Net Revenue 1306 1254 4% 1207 1132 7% Other Income* 21 32 -33% 3 24 -86% Total Revenue 1327 1286 3% 1210 1156 5% Margin 484 474 2% 480 462 4% Margin% 37.1% 37.8% (70 Bps) 39.7
Slide 42: Financials YTD FY24
FINANCIALS YTD FY24 Particulars Non GAAP GAAP Rs. in Crs. FY24 FY23 Gr% FY24 FY23 Gr% Gross Revenue 3996 3891 3% 3614 3468 4% Net Revenue 3521 3423 3% 3213 3082 4% Other Income* 66 68 -2% 21 34 -38% Total Revenue 3588 3491 3% 3235 3116 4% Margin 1313 1291 2% 1312 1275 3% Margin% 37.3% 37.7% (40 Bps)
Slide 43: Stores, Customers and Brands at a Glance
233 Stores 9.7M 800+ FIRST CITIZENS BRANDS 13% Mix 18% Mix As at 31st Dec’23 PRIVATE BRANDS BEAUTY 4.1 M 56 SQUARE FEET CITIES AREA 13.9 Mn CUSTOMER ENTRY in Q3 (1) 18.6K TALENT POOL HomeStop, Dehradun 1. Includes Brand staff 42
Slide 44: Disclaimer
DISCLAIMER Certain statements in this release concerning our future growth prospects are forward-looking statements within the meaning of applicable securities laws and regulations, and which involve number of risks and uncertainties, beyond the Control of the company, that could cause actual result
Slide 45: Investor contact
In case of any clarifications please contact on [email protected]
Slide 46: Press Release: Reports quarterly sales of Rs 1,207 Cr
Press Release for immediate distribution Reports quarterly sales of Rs 1,207 Cr, up +7% YoY and EBITDA of Rs.219 Cr (GAAP) • Beauty outperformed +10%, led by Fragrance +41%; Make up +6%; Overall Mix at 18% • Private Brands Mix at 13% and apparels Mix at 19%; Women Indian wear outperformed +7% • Prem
Slide 47: Performance of strategic pillars in Q3FY24
Performance of strategic pillars in Q3FY24: • First Citizen – Our First Citizen Members contributed 78% to overall sales, out of which 65% were repeat and 13% new members. Our Premium Black Card members contributed 13% to the overall sales, an increase of 18% YoY. During the quarter we added 191K me
Slide 48: About Shoppers Stop and contact
loyalty program 'First Citizen'. The Company's one-of-a-kind shopping assistance service, 'Personal Shopper' is revolutionizing the way Indian’s shop, bringing more value, comfort, and convenience to customer experiences. The brand's diversified Omni channel offering spans over 800+ recognized and t