Shoppers Stop’s fiscal first quarter marks a modest earnings turnaround driven by increased premium merchandise sales, improved inventory management, and a surge in beauty and value fashion categories, signalling a strategic shift towards higher-end offerings ahead of the festive season.
Shoppers Stop Ltd. said it made a modest return to profit in the quarter ended June 30, 2026, as stronger premium sales, tighter inventory control and growth in beauty helped lift results at the start of FY27. The retailer said consolidated non-GAAP revenue rose 10% year on year to Rs 1,536 crore, while EBITDA increased 40% to Rs 43 crore and profit after tax came in at Rs 5 crore, versus a loss of Rs 4 crore a year earlier. Market summaries of the same quarter showed slightly different statutory measures, with revenue from operations around Rs 1,291 crore and a net loss of about Rs 14 crore, underscoring the difference between the company’s non-GAAP reporting and its formal accounts.
The department store chain’s core business remained the main engine of growth. Shoppers Stop said its department store revenue reached Rs 1,242 crore, with like-for-like sales up 6% and customer footfall rising 3% for a fifth straight quarter. Average transaction value climbed 10%, a sign that shoppers continued to trade up into more expensive lines. The company said premium merchandise made up 72% of sales, rising 15% year on year, while its average selling price also increased, reflecting the continued shift towards higher-end products.
Beauty was again one of the strongest categories. The company said beauty sales rose 15% to Rs 327 crore, helped by a 34% surge in fragrance. Global SS Beauty Brands delivered its best quarter yet, with revenue of Rs 129 crore, up 53% year on year. Shoppers Stop also said its value fashion arm, INTUNE, showed signs of recovery, with revenue rising 21% to Rs 82 crore and like-for-like growth of 10% after four quarters of decline.
Chief executive Kavindra Mishra said the quarter reflected stronger engagement, better service and a more disciplined approach to stock and capital use. The First Citizen loyalty programme expanded to 13.8 million members and accounted for 85% of sales, while Black Card customers represented 23% of total sales. Shoppers Stop opened eight stores during the quarter and said it cut inventory by Rs 80 crore year on year, reduced debt by Rs 93 crore and invested Rs 44 crore in new outlets. Mishra said the company remained focused on becoming debt-free by FY27 and that improved supply-chain visibility should support demand ahead of the festive season.
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