Shoppers Stop Limited · NSE:SHOPERSTOP
Shoppers Stop — Q1 FY25 Earnings Presentation
37 slides from Shoppers Stop's earnings presentation, Jul 19, 2024
Slide 1: Exchange cover letter: press release and investor presentation
SHOPPERS STOP SEC/59/2024-25 July 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.: Pr
Slide 2: Press Release: quarterly sales of Rs 1034 Cr and EBITDA of Rs 146 Cr
Press Release for immediate distribution Shopper Stop reports quarterly sales of Rs 1034 Cr and EBITDA of Rs.146 Cr (GAAP) in Q1FY25 Sales Rs.1034 Cr +5% Beauty outperformed +5%, led by Fragrance +19%, overall mix 17% Strategically continue to expand 2 Department, and 9 INTUNE stores INTUNE
Slide 3: Performance of strategic pillars in Q1FY25
Performance of strategic pillars in Q1FY25: First Citizen – Our First Citizen Members contributed 80% to overall sales, with 67% repeat and 13% new members. Our Premium Black Card members contributed 14% to the overall sales, an increase of +5% YoY. During the quarter, the Black Card renewal was a
Slide 4: Shoppers Stop Q1FY25
SHOPPERS STOP QIFY25
Slide 5: Key Highlights
01KEY HIGHLIGHTS 02 STRATEGIC PILLARS 03 FINANCIALS
Slide 6: Consumption Industry Expansion
Consumption Industry Expansion – Subdued Consumption Trends – Higher than normal Closure of – Retail sector is set to grow 50% due to: stores in Q4 to 134 million sq ft by 2028 (Current 89 Mn sq ft)(1) – Uneven weather patterns– – Value fashion continues to prolonged heatwave outgrow – India’s direc
Slide 7: Sales Expansion
Sales (Non-GAAP) – Rs 1,260 Crs, +2% – Beauty Rs.212 Crs +5%, driven by Fragrance +19% – Intune Rs.35 Crs – ATV +5% (Rs 4,890 vs Rs 4,642) due to premiumization – Items per Ticket (IPT) +2% – First Citizen @ 80%, Repeat 67%; New 13% – Personal Shoppers contribution improved +5%; 140+ new personal sh
Slide 8: Q1 Highlights and Way Forward to sustain Profitability
Q1 Highlights Way Forward to sustain Profitability – Demand remained subdued in Q1FY25 due to – Focus on premiumization EXTERNALITIES – – Contribution at 57% Vs LY 54% – Premium portfolio grew by + 5% – Fewer wedding dates, – Long election season and a strong heat wave – Investment in Marketing and
Slide 9: Non-GAAP and GAAP revenue, EBITDA, PBT, PAT
Particulars Non GAAP %Sales GAAP %Sales Revenue 1,260 1,034 EBITDA 15 1.4% 146 14.1% PBT -24 -2.2% -32 -3.1% PAT -15 -1.4% -23 -2.2% %Sales is on Sales (Net of GST) 6
Slide 10: Non-GAAP Sales, Margin, EBITDA and PBT trends
Sales Margin 140 0 130 0 +2% 38.2% 38.1% 37.7% 39. 0% 120 0 38. 0% 400 110 0 37. 0% 100 0 900 36. 0% 300 800 35. 0% 1241 1260 700 600 500 1190 200 32.1% 401 416 419 34. 0% 33. 0% 400 32. 0% 300 100 246 200 70 31. 0% 100 0 30. 0% 0 Q1FY22 Q1FY23 Q1FY24 Q1FY25 Q1FY22 Q1FY23 Q1FY24 Q1FY25 EBITDA PBT 6.
Slide 11: GAAP Sales, Margin, EBITDA and PBT trends
Sales Margin +5% 42.3% 120 0 500 44. 0% 42.2% 40.6% 110 0 43. 0% 100 0 400 900 42. 0% 800 300 700 41. 0% 600 500 400 942 982 1034 200 38.7% 397 415 420 40. 0% 39. 0% 300 100 200 201 78 38. 0% 100 0 0 37. 0% Q1FY22 Q1FY23 Q1FY24 Q1FY25 Q1FY22 Q1FY23 Q1FY24 Q1FY25 EBITDA PBT 17.8% 18.3% 3.4% 2.1% 14.1
Slide 12: Items per Transaction, ATV and ASP
(Offline Only) Items per Txn. (Nos.) ATV (Rs/-) 650 0 640 0 630 0 620 0 610 0 600 0 590 0 +5% 580 0 570 0 560 0 550 0 540 0 530 0 520 0 510 0 500 0 490 0 480 0 +2% 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 4890 280 0 4642 270 0
Slide 13: Premium Brands contribution on rise
– Premium Brands contribution on rise YoY, 57% Vs 54% – New launches/exclusive to Shoppers Stop – Apparels- Armani Exchange, GANT, GAP, True Religion, Elle, Saundh, Salt Attire – Non Apparels – Sunglasses –Tom Ford, Prada, Dior, Versace, Gucci – Launched in 5 Stores and 5 Stores WIP – Watches-Aigner
Slide 14: Strategic Pillars
01 KEY HIGHLIGHTS 02 STRATEGIC PILLARS 03 FINANCIALS
Slide 15: Contribution: First Citizen, Beauty, Private Brands, Expansion
10.1 M Rs 212 Crs Rs 151 Crs 11 Stores in Q1 FIRST CITIZEN BEAUTY PRIVATE BRANDS EXPANSION Dept-2 80% 17% 12% INTUNE-9 Contribution 12
Slide 16: First Citizen sales contribution
Sales contribution First Citizen Total Mix% Gr% Repeat% Gr% Overall Sales 80% Flat 67% 50 bps Black Card Members – Contribution 14% to Overall Sales – Sales Growth +5% Customer Engagement – Personalized campaigns had 4X response – Customer engagements through innovative master classes viz; Lipstick
Slide 17: Private Brands: Aspirational Fashion at Affordable Prices
Sales Rs.151 Crs Aspirational Fashion at Affordable Prices – PB Contribution – Overall 12% – Apparels 18% – Better full price Sell thru for SS24 – Competitive Prices besides Clear Brand positioning – Reduction in Inventory by Rs 21 Crs QoQ and YoY Rs 65 Crs – To drive productivity by Brand consolida
Slide 18: INTUNE Key Insights and KPIs
Key Insights – Healthy Mix of Kidswear and Indianwear – Increased contribution from Western Womenswear – Range expanded in Junior Kids (1-2 years) – Stores increased to 31, with presence in 14 cities (5 cities added during the quarter) KPIs – Sale of Rs 35 Crs in Q1 – SPSF circa Rs 11K psf for Store
Slide 19: Cluster based expansion, on track to add 80 stores
Cluster based expansion, On track to add 80 stores Store count As On Q1 As On Region Market Mar24 Additions Jun24 AP/TL 7 7 Karnataka 5 5 South Kerala 1 1 2 Total 13 1 14 Maharashtra 6 1 8 West Gujarat 3 5 7 Total 9 6 15 North NCR 2 2 Grand Total 22 9 31 – Added 9 Stores during the quarter, Entered
Slide 20: Beauty: Growing consumption through engagement, expression and education
Growing consumption through engagement, expression and education Beauty Business Network Sales Rs. 241 Crs. +12% Offline Count Rs. 212 Crs. +5% (excl. Distribution) Department stores 114 Fragrance +19% EBOs (incl. SSBeauty) 87 Shop-in-shop 61 Online – Customer engagement and education through – 239K
Slide 21: Beauty Distribution
Sales Rs. 39 Crs − Brands portfolio expanded to 27 brands with 8 “Fragrance Brands” − Armani, Ajmal, Reebok, Manchester United − FC Barcelona, Pepe Jeans, Woman’s secret and Gans “ARMANI” @MGF Saket, New Delhi − Distribution network 444 POS – Personalised Counters Launched in Department stores – ARM
Slide 22: Armani Si India Launch
Armani Si India Launch
Slide 23: Store Count and Additions
Store Count Additions Planned Actual As On Format In FY25 In Q1 30th Jun’24 Department 15 2 114 Beauty SSBeauty 15 13 Area 4.4M sq.ft. City Presence Added 3 in Q1; Total 65 Brands 12 74 Capex and Deposits Rs 45 Crs INTUNE 80 9 31 HomeStop 7 7 Airport 20 Total 129 11 259 20
Slide 24: Store images
SHOPPERS STOP Nal i
Slide 25: ad = ae x = CO Nagi House
ad = ae x = CO Nagi House
Slide 26: HomeStop Chennai (Renovated)
Homesiop CHENNAI (Renovaied) ani Phoenix Markei city 23
Slide 27: Renovated store
Sura (Renovaied) — ALG | } =) = ee », a VIR Mall 24
Slide 28: Financials
01 KEY HIGHLIGHTS 02 STRATEGIC PILLARS 03 FINANCIALS
Slide 29: Sales, Gross Margin and EBITDA vs Q1 FY24
Vs Q1 FY24 (Rs Crs) +2% (40 bps) (74%) Sales Gross Margin EBITDA Non GAAP 1260 419 15 GAAP 1034 420 146 +5% (170 bps) (19%) 26
Slide 30: Non-GAAP and GAAP Financials
Particulars Non - GAAP Financials GAAP Financials Rs. in Crs. FY25 FY24 Gr% FY25 FY24 Gr% Gross Revenue 1260 1241 2% 1163 1103 5% Net Revenue 1113 1093 2% 1034 982 5% Other Income 22 24 -10% 4 7 -51% Total Revenue 1134 1117 2% 1037 989 5% Margin 419 416 1% 420 415 1% Margin% 37.7% 38.1% -
Slide 31: Balance sheet and net cash
Particulars (Rs. In Crs.) Jun’24 Mar’24 Net worth 769 785 Loan Fund 156 125 Total Liabilities 924 910 Fixed Assets + Lease Deposit 869 864 Investments 59 59 Inventory* 1666 1617 Other Assets 575 552 Total Current Assets 2134 2070 Net Cash Rs. in Crs Trade Creditors Goods* 1766 1678 Cash & Investmen
Slide 32: Cash flow
Particulars Jun’24 Mar’23 Cash Profit from Operations (after tax) 15 222 Changes in Working Capital 18 -51 Cash generated from Operations 32 170 Fixed Assets /Reduction in Capex Creditors* -61 -211 Cash generated from Operations -28 -40 Redemption of Investments (Net) 0 43 Cash post Investing Activ
Slide 33: Outlook and Priorities
Outlook Priorities – K-Shaped growth witnessed, Luxury/Premium and – Focus on “Festive Demand” through Intense Value fashion outgrowing Marketing Campaigns and Experiential services – Economic growth to sustain, enabling increase in – Drive Wedding gifting with 47 Wedding Days in H2 Vs affluent hous
Slide 34: Annexures
ANNEXURES
Slide 35: Non-GAAP to GAAP reconciliation
Particulars Non GAAP GAAP Rs. in Crs. FY25 FY24 Gr% FY25 FY24 Gr% Gross Revenue 1260 1241 2% 1163 1103 5% Net Revenue 1113 1093 2% 1034 982 5% Other Income 22 24 -10% 4 7 -51% Total Revenue 1134 1117 2% 1037 989 5% Margin 419 416 1% 420 415 1% GAAP Margin% 37.7% 38.1% -40 Bps 40.6% 42.3% -
Slide 36: Shoppers Stop at a glance
As on 30 th Jun’24 259 Stores 10.1 Mn 800+ FIRST CITIZENS BRANDS 12% Mix 17% Mix PRIVATE BRANDS BEAUTY 4.4 M 65 SQUARE FEET CITIES AREA 12.1 Mn CUSTOMER ENTRY in Q1 (1) HomeStop HomeStop 20.5K TALENT POOL 1 . I n c l u d e s B r a n d s t a f f 33
Slide 37: Forward-looking statements 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 results to differ