India’s Shoppers Stop Ltd reported a quarterly profit on Wednesday from a year-ago loss, as the department store operator benefited from strong demand for beauty products and higher-margin private-label clothing.
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High-income shoppers splurged on clothes and accessories after returning to their pre-pandemic lifestyles during the wedding season between January and March. Moderation in inflation and some moderation in raw material costs also helped.
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The company reported a consolidated net profit of Rs 142.6 million ($1.74 million) for the quarter ended March 31, compared with a loss of Rs 158.5 million a year earlier.
Average selling price increased by 9%, while revenue stood at 9.24 billion rupees, up nearly 30% from a year ago.
“This is the highest ever sales and sales growth, with consistent improvement in all key performance indicators,” Shoppers Stop Managing Director and CEO Venu Nair said in a statement.
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Revenue for Shoppers Stop’s beauty segment – which includes brands such as L’Oreal, Clarins and Arthi, as well as its private label Arcelia – rose 29% to 1.97 billion rupees, compared to 18% growth in the previous quarter.
The company is also focusing on private-label apparel to boost its margins.
Revenue from this business, which includes brands such as STOP, Fratini and Bandeya, grew 35% to Rs 1.58 billion, compared to 23% growth in the previous quarter.
As of March 31, the company had 142 beauty stores as against 98 departmental stores across the country.
The text of this story is published from a wire agency feed without any modification.
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