Shoppers Stop Limited · NSE:SHOPERSTOP
Shoppers Stop — Q2 FY25 Earnings Presentation
46 slides from Shoppers Stop's earnings presentation, Oct 23, 2024
Slide 1: Press Release and Investor Presentation cover letter to exchanges
SHOPPERS STOP SEC/103/2024-25 October 22, 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: Press Release: Q2 Sales Rs 1068 Cr +4%, EBITDA Rs 157 Cr
Press Release for immediate distribution Q2 Sales of Rs 1068 Cr +4%, EBITDA Rs 157 Cr H1FY25 Sales of Rs 2102 Cr +5%, EBITDA Rs 302 Cr (GAAP) Beauty outperformed +10%, led by Fragrance +17% contribution to total sales 17% Expansion on Track; 25 New Stores, 19 INTUNE, 1 Department and 5 HomeStop
Slide 3: Press release: management comments and strategic pillars performance
Category this quarter. We renovated and made our Malad Store (in Mumbai) as a destination for Premium offerings. Sales for the quarter were at Rs 1,068 Cr, +4% with EBITDA at Rs 157 Cr (GAAP). We had the first green shoot in September, with sales increasing by 12% (LTL +9%). The contribution from Pr
Slide 4: About Shoppers Stop
operates 11 premium home concept stores, 87 Specialty Beauty stores of M.A.C, Estée Lauder, Bobbi Brown, Clinique, Jo Malone, Too Faced, SS Beauty, 50 Intune stores and 20 Airport doors, occupying area of 4.4 M sq. ft. present in 65 cities pan India. Shoppers Stop is home to one of the country's lon
Slide 5: Performance Highlights FY25 Quarter 2
PERFORMANCE HIGHLIGHTS FY25 | QUARTER#2 1
Slide 6: Contents
CONTENTS 01 KEY HIGHLIGHTS 02 STRATEGIC PILLARS 03 FINANCIALS 2
Slide 7: Riding the Premiumization Wave
RIDING THE PREMIUMIZATION WAVE 3
Slide 8: Capitalizing Growth Through Premiumization
CAPITALIZING GROWTH THROUGH PREMIUMIZATION – Premium Brands contribution on rise YoY, 64% Vs 60% – New brands launched SUNGLASSES WATCHES LIMITED EDITION HANDBAGS APPARELS FOOTWEAR – Opened Coffee Shops in 5 Stores 4
Slide 9: Explore our newly renovated Premium Flagship Store Inorbit Malad
Explore our newly renovated Premium Flagship Store “Inorbit Malad, Mumbai” Click here for a virtual store experience 5
Slide 10: Inside view: Renovated Premium Flagship Store at Inorbit Malad
Inside view : Renovated Premium Flagship Store at Inorbit Malad 6
Slide 11: Market Outlook
MARKET OUTLOOK CUSTOMER INDUSTRY EXPANSION – Premiumization is increasing. – Improving trends with slowness – India's organized retail Indian consumers are opting gradually lifting from Sep. July apparel sector to clock 8-10 % for higher-quality and more and August severely impacted. growth this fis
Slide 12: Q2 at a Glance
Q2 AT A GLANCE SALES [NON-GAAP] ▪ Rs 1,298 Crs, +2% ▪ Beauty outperformed, Rs.218 Crs +10% ▪ ATV +9% (Rs 4,729 vs Rs 4,348) driven by premiumization ▪ Items per Ticket (IPT) +2% ▪ Sept apparels Volume growth +11% ▪ First Citizen @ 81%, Repeat 67%; New 14% ▪ Personal Shoppers sale contribution improv
Slide 13: Q2 Highlights and Way Forward
Q2 HIGHLIGHTS WAY FORWARD – Subdued demand in July and August due to lower – Sustain premiumization in the departmental stores @ wedding dates and extended rains 65%+ – Improved performance in September +12%, LFL +9% – Wedding Season for Q3 and Q4 FY25 – capitalize opportunities with range of offeri
Slide 14: Q2 in Numbers
Q2 IN NUMBERS Non Particulars %Sales GAAP %Sales GAAP Revenue 1,298 1,068 EBITDA 21 1.8% 157 14.7% PBT* -23 -2.0% -31 -2.9% PAT* -15 -1.3% -22 -2.1% %Sales is on Sales (Net of GST) *Includes Rs.2.1 Crs provided for stocks damaged under fire in Noida, though confident of receiving nearly full amount
Slide 15: H1 in Numbers
H1 IN NUMBERS Non Particulars %Sales GAAP %Sales GAAP Revenue 2,558 2,102 EBITDA 36 1.6% 302 14.4% PBT* -48 -2.1% -63 -3.0% PAT* -30 -1.3% -45 -2.1% %Sales is on Sales (Net of GST) *Includes Rs.2.1 Crs provided for stocks damaged under fire in Noida, though confident of receiving nearly full amount
Slide 16: Quarterly Trend (Non GAAP)
QUARTERLY TREND (NON GAAP) Sales Margin 37.1% 36.9% 140 0 130 0 120 0 36.7% 39. 0% 38. 0% 110 0 400 35.0% 37. 0% 100 0 1298 900 36. 0% 423 300 800 1270 1271 35. 0% 700 416 413 600 34. 0% 200 785 500 33. 0% 243 400 300 32. 0% 100 200 31. 0% 100 0 0 30. 0% Q2FY22 Q2FY23 Q2FY24 Q2FY25 Q2FY22 Q2FY23 Q2F
Slide 17: Quarterly Trend (GAAP)
QUARTERLY TREND (GAAP) Sales Margin 41.2% 39.9% 140 0 40.7% 130 0 120 0 110 0 400 100 0 900 38.2% 300 800 426 700 600 500 1008 1025 1068 200 241 415 417 632 400 300 100 200 100 0 0 Q2FY22 Q2FY23 Q2FY24 Q2FY25 Q2FY22 Q2FY23 Q2FY24 Q2FY25 EBITDA PBT 176 170 138 157 25. 0% PBT 50 21.9% 17.4% 16.6% 14.7
Slide 18: Operational KPIs Q2
OPERATIONAL KPIs Q2 (Offline only) Items per Txn. (Nos.) 650 0 640 0 630 0 620 0 610 0 600 0 590 0 ATV (Rs/-) +9% 580 0 570 0 560 0 550 0 540 0 +2% 530 0 520 0 510 0 500 0 490 0 480 0 470 0 460 0 450 0 440 0 430 0 420 0 410 0 400 0 390 0 380 0 370 0 360 0 350 0 340 0 330 0 320 0 310 0 300 0 290 0 28
Slide 19: Contents
CONTENTS 01 KEY HIGHLIGHTS 02 STRATEGIC PILLARS 03 FINANCIALS 15
Slide 20: Strategic Pillars
STRATEGIC PILLARS 10.9 M Rs 218 Crs Rs 156 Crs 25 Stores in Q2 FIRST CITIZEN BEAUTY PRIVATE BRANDS EXPANSION INTUNE-19 81% 17% 12% Dept-1 Homestop-5 Contribution 16
Slide 21: First Citizen
FIRST CITIZEN Sales contribution – Overall 81% (incl. Repeat 67%) Black Card Members – Contribution 14% to Overall Sales – Sales Growth +17% Customer Engagement – AI based Personalized campaigns had 3X response in Pujo. Similar campaigns for Diwali. – Increased customer engagement through 17 exclusi
Slide 22: Private Brands
PRIVATE BRANDS Aspirational Fashion at Affordable Prices Sales Rs.156 Crs – PB Contribution – Overall 12% – Apparels 18% – 6% Volume growth from AW24 merchandise, – Apparel Men’s + 49%, – Women’s Western Wear +24%; Sales and Contribution % – Women’s Indian Wear brand “Kashish” + 21% 21.2% 21.1% 25.
Slide 23: INTUNE
INTUNE – 50 Stores in 20 Cities across regions – Sales Q2 Rs 41 Crs; YTD Rs. 75 Crs – Conversion at 32%, IPT Sustained – Kids wear and T-Shirts categories continue to outperform – Women’s Western wear Mix expanded – Higher Full Price Sales expanded Margins MENS WOMENS KIDS WOMENS WOMENS T-SHIRTS T-S
Slide 24: INTUNE Expansion
INTUNE EXPANSION Expansion on Track Adding 22 New Stores in Q3 and 28 in Q4 Store count Region Market Jun’24 Q2 Additions Sep’24 AP/TL 7 1 8 South Karnataka 5 4 9 Kerala 2 2 Gujarat 8 3 11 West Maharashtra 7 1 8 North NCR 2 8 10 East East 0 2 2 Grand Total 31 19 50 – Added 19 Stores during the quart
Slide 25: Beauty
BEAUTY Sales Rs. 257 Crs. +19% Beauty Business Network Rs. 218 Crs. +10% (excl. Distribution) Offline Count Fragrance +17% Department stores 112 EBOs (incl. SSBeauty) 87 Shop-in-shop 61 – Instagram followers 440k+; YouTube subscribers 84k Online Shoppersstop.com SSBeauty.in – Customer engagement and
Slide 26: New Brands Launched
NEW BRANDS LAUNCHED MAKEUP FRAGRANCE SKINCARE 22
Slide 27: Beauty Distribution
BEAUTY DISTRIBUTION Sales Rs. 52 Crs +130% YoY 140% 100 90 80 QoQ Sales Growth 91 70 130% 60 154% 50 40 52 30 39 38 20 23 15 10 0 Q1 Q2 H1 FY24 FY25 Click here to view the Polo 67 launch event POLO 67 Launch Event 23
Slide 28: HomeStop
HOMESTOP Sales Rs. 33 Crs +19% QoQ − Black card contribution +19% QoQ − New Members shopped +12% QoQ Expansion − 5 New stores opened New International Brands launched GLASSWARE COOKWARE 24
Slide 29: Marketing Campaigns
MARKETING CAMPAIGNS PRE FESTIVE CAMPAIGN FESTIVE COLLECTION LAUNCH PUJO CAMPAIGN FASHION SHOW @ Inorbit Malad, Mumbai Click here to View Pujo Fashion show event 25
Slide 30: Expansion
EXPANSION Additions Mar'25 Store Count Sep'24 H1 H2 (Fcst) (Actual) (Planned) Department 112 3 7 119 SSBeauty 13 2 15 Beauty EBO 74 4 78 INTUNE 50 28 50 100 HomeStop 11 5 2 13 Airport 20 20 Total 280 36 65 345 As on 30th Sep 2024 Area 4.4M sq.ft. City Presence 65 Cities Capex and Deposits Rs 43 Crs
Slide 31: Capital City Scape - Gurgaon
Capital City Scape- Gurgaon 27
Slide 32: R Cube IRCON - Noida
R Cube IRCON- Noida 28
Slide 33: Gulshan One29 - Noida
Gulshan One29- Noida 29
Slide 34: Contents
CONTENTS 01 KEY HIGHLIGHTS 02 STRATEGIC PILLARS 03 FINANCIALS 30
Slide 35: KPI Performance - Q2
KPI PERFORMANCE-Q2 Vs Q2 FY24 (Rs Crs) +2% 10 bps (49%) Sales Gross Margin EBITDA Non 1298 423 21 GAAP GAAP 1068 426 157 +4% (80 bps) (8%) 31
Slide 36: KPI Performance - H1
KPI PERFORMANCE-H1 Vs H1 FY24 (Rs Crs) +2% (10 bps) (64%) Sales Gross Margin EBITDA Non 2558 842 36 GAAP GAAP 2102 845 302 +5% (130 bps) (14%) 32
Slide 37: Financials Q2 FY25
FINANCIALS Q2 FY25 Particulars Non - GAAP Financials GAAP Financials Rs. in Crs. FY25 FY24 Gr% FY25 FY24 Gr% Gross Revenue 1298 1271 2% 1199 1149 4% Net Revenue 1147 1123 2% 1068 1025 4% Other Income 19 22 -12% 10 11 -8% Total Revenue 1167 1145 2% 1078 1036 4% Margin 423 413 3% 426 417 2%
Slide 38: Financials H1 FY25
FINANCIALS H1 FY25 Particulars Non - GAAP Financials GAAP Financials Rs. in Crs. FY25 FY24 Gr% FY25 FY24 Gr% Gross Revenue 2558 2513 2% 2362 2252 5% Net Revenue 2260 2216 2% 2102 2007 5% Other Income 41 45 -9% 13 18 -25% Total Revenue 2301 2261 2% 2115 2024 4% Margin 842 829 2% 845 832 2%
Slide 39: Balance Sheet (Non-GAAP)
BALANCE SHEET (Non-GAAP) Particulars (Rs. In Crs.) Sep’24 Mar’24 Net worth 757 785 Loan Fund 180 125 Total Liabilities 936 910 Fixed Assets + Lease Deposit 875 864 Investments 64 59 Inventory* 1821 1617 Other Assets 566 552 Total Current Assets 2271 2070 Trade Creditors Goods* 1896 1678 Others 495
Slide 40: Cash Flow
CASH FLOW Particulars Sep’24 Mar’24 Cash Profit from Operations (after tax) 33 222 Changes in Working Capital 30 -60 Cash generated from Operations 63 162 Fixed Assets /Reduction in Capex Creditors* -113 -211 Cash generated from Operations -50 -49 Redemption of Investments (Net) -5 18 Cash post Inv
Slide 41: Way Forward
WAY FORWARD OUTLOOK PRIORITIES – Retail demand in Q3 and Q4 seems buoyant with – Focused on driving Premiumization large scale weddings and favorable monsoon – Continued investments in Marketing/Loyalty to – Competition to intensify on Value Fashion expansion drive our long-term Strategic Priorities
Slide 42: Annexures
ANNEXURES 38
Slide 43: Financials Q2 FY25
Particulars Non GAAP GAAP Rs. in Crs. FY25 FY24 Gr% FY25 FY24 Gr% Gross Revenue 1298 1271 2% 1199 1149 4% Net Revenue 1147 1123 2% 1068 1025 4% Other Income 19 22 -12% 10 11 -8% FINANCIALS Total Revenue Margin 1167 423 1145 413 2% 3% 1078 426 1036 417 4% 2% Q2 FY25 Margin% 36.9% 36.7% 10 B
Slide 44: Financials H1 FY25
Particulars Non GAAP GAAP Rs. in Crs. FY25 FY24 Gr% FY25 FY24 Gr% Gross Revenue 2558 2513 2% 2362 2252 5% Net Revenue Other Income 2260 41 2216 45 2% -9% 2102 13 2007 18 5% -25% FINANCIALS Total Revenue 2301 2261 2% 2115 2024 4% H1 FY25 Margin 842 829 2% 845 832 2% Margin% 37.3% 37.4% -10
Slide 45: As on 30th Sep'24
As on 30 th Sep’24 280 Stores 10.9 Mn 800+ FIRST CITIZENS BRANDS 12% Mix 17% Mix PRIVATE BRANDS BEAUTY 4.4 M 65 SQUARE FEET CITIES AREA 12.4 Mn CUSTOMER ENTRY in Q2 (1) 21.2K TALENT POOL Inorbit Mall Malad, Mumbai 1. Includes Brand staff 41
Slide 46: 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