BackShoppers Stop Q1 profit drops 54% to Rs75 lakh
Revenue increased 13.6% to Rs675.5 crore from Rs594.8 crore a year-ago
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Shoppers Stop Ltd’s first-quarter profit dropped by 54% from a year ago because of increasing costs and slowing sales.
Net profit, excluding those of its units, fell to ₹ 75 lakh in the three months ended 30 June from ₹ 1.64 crore in the year earlier.
Revenue for the K. Raheja Corp. group company, which operates large-format department stores and speciality stores such as Crossword, Mothercare, M.A.C., and hypermarkets under the HyperCity brand, increased 13.6% to ₹ 675.5 crore from ₹ 594.8 crore a year-ago.
In the June quarter, Shoppers Stop added two department stores to its network of 69 stores across 32 cities in India. The retailer opened five Crossword stores in Mangalore and Kolkata and Siliguri, three M.A.C stores in Bengaluru and Pune, one Bobbi Brown store in Gurgaon and two Clinique doors in Noida and Kolkata.
Trent Ltd, a retail chain run by the Tata group that operates Westside and Star Bazaar stores, and Future Group companies Future Retail Ltd which operates Big Bazaar and Foodhall, and Future Lifestyle Fashions Ltd which runs department chain Central, are yet to report their earnings.
Earlier this month, Reliance Retail Ltd, the retail arm of conglomerate Reliance Industries Ltd reported a 144% jump in operational profit to ₹ 171 crore from ₹ 70 crore in the year ago period. Reliance Retail’s revenue grew 15% in the quarter ended 30 June.
On Thursday, Shoppers Stop lost 0.31% to close at ₹ 388 on BSE. The exchange’s benchmark Sensex lost 0.74% to end at 25,894.97 points. The earnings were announced after market hours.
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