Shoppers Stop has reported a significant turnaround in its financials for Q1 FY27, buoyed by increased premium product sales, strategic stock management, and a boom in beauty sector revenues, setting a positive tone for the festive season.
Shoppers Stop has begun the new financial year with a clearer recovery story, reporting a return to profit in the quarter to June 30 as premium demand, tighter stock control and stronger beauty sales lifted performance.
The department store chain said consolidated non-GAAP revenue reached Rs 1,536 crore in the first quarter of FY27, up 10% from a year earlier, while EBITDA climbed 40% to Rs 43 crore. Profit after tax came in at Rs 5 crore, compared with a loss of Rs 4 crore in the same period last year. Other market reports said the company’s consolidated net loss narrowed to about Rs 14.3 crore on revenue from operations of Rs 1,291 crore, underscoring differences in reporting bases but pointing to the same broader trend of improvement.
Chief executive Kavindra Mishra said the company benefited from stronger customer engagement and a more premium product mix. Like-for-like sales in the core department store business rose 6%, while footfall increased 3% for the fifth straight quarter. Average transaction value climbed 10%, suggesting shoppers were spending more on higher-end products.
Beauty remained the standout category. Sales in that division rose 15% to Rs 327 crore, helped by a 34% jump in fragrance sales. The company’s beauty distribution arm, GSSBB, recorded its highest quarterly revenue at Rs 129 crore, up 53%. Intune, Shoppers Stop’s value fashion format, also showed a rebound, with revenue up 21% to Rs 82 crore and like-for-like growth of 10% after four weaker quarters.
The retailer said premium products accounted for 72% of department store sales and grew 15% in the quarter. It also cut inventory by Rs 80 crore year-on-year, opened eight new stores and spent Rs 44 crore on expansion. Its First Citizen loyalty programme reached 13.8 million members and contributed 85% of total sales. Mishra said demand had held up through the quarter and that better supply-chain visibility left the company better placed for the festive season and its goal of becoming debt-free by FY27.
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