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    Shoppers Stop

    SHOPERSTOPGood
    Consumer Services·17 Oct 2025
    Management Summary

    Shoppers Stop reported robust Q2 FY26 results, driven by a successful premiumization strategy and strong performance across core categories. The company achieved its highest departmental store like-for-like growth in a decade and significantly improved profitability, turning PBT positive. While new ventures like INTUNE and ssbeauty.in are in an investment phase, the beauty distribution business showed exceptional growth, reinforcing management's confidence in sustainable, profitable growth despite broader market cautiousness.

    Highlights

    8

    • Overall sales rose by 7% in Q2 FY26.

    • Departmental store like-for-like growth was 9.4%, the highest in 10 years.

    • EBITDA grew by 42% in Q2 FY26.

    • Profit Before Tax (PBT) turned from a loss of ₹12 crores to a profit of ₹9 crores, an improvement of ₹21 crores.

    • Beauty distribution business (GSSB) delivered outstanding performance, growing by 103% year-on-year.

    • Premium product mix grew by 16%, now contributing 69% of total mix.

    • Customer entry increased by 6% like-for-like, a positive for the first time in many years.

    • Working capital reduced by ₹63 crores in Q2.

    Key financials

    Single quarter

    06 metrics
    1. 01Overall Sales Growth7.0%
    2. 02Dept. Store LFL Growth9.4%
    3. 03EBITDA Growth42%
    4. 04PBT₹9 Cr
    5. 05Beauty Dist. Growth1.0%

    Segment breakdown

    Core Business
    7.0% Sales Growth9.4% Departmental Store LFL Growth42% EBITDA Growth₹9 Cr PBT
    INTUNE (New Business)
    positive directional Like-for-like Growth Q2incurring planned losses directional Status
    ssbeauty.in (New Business)
    incurring planned losses directional Status
    Global SSBeauty (Distribution Business)
    103% Growth
    List

    Guidance & targets

    8
    CategoryTargetPriority
    Store Count
    Departmental Stores Opening
    5
    		High
    Store Count
    Departmental Stores Opening
    4-5
    		High
    Store Count
    Net Departmental Stores
    9-10
    		High
    Store Count
    INTUNE Stores Opening
    5
    		High
    Store Count
    INTUNE Stores Opening
    8-10
    		High
    Margin
    Core Business EBITDA Margin
    mid-single-digit or slightly better
    		Medium
    Profitability
    INTUNE Store-level Breakeven
    very close to breakeven
    		Medium
    Growth
    Beauty Category (ex-distribution) Growth
    high single digits
    		Medium

    Risks & concerns

    6
    RiskSeverity

    Sluggish growth in discretionary categories and consumer goods

    Q2 was marked by sluggish growth in certain discretionary categories and consumer goods, with urban consumers cautious due to inflationary concerns and geopolitical uncertainties. — Management acknowledged

    medium

    Short-term losses in new businesses (INTUNE, ssbeauty.in)

    Both INTUNE and ssbeauty.in are in an investment phase and are incurring planned losses due to front-loaded investments in store openings, marketing, and technology. — Management acknowledged

    low

    Delays in departmental store openings

    Opening of new departmental stores was delayed in Q2 due to reasons beyond control, such as approvals and occupancy certificates. — Management acknowledged

    low

    Overheated beauty segment (ex-distribution)

    Management noted that the beauty segment is 'quite overheated,' making it less profitable for early players, and they are focusing on the Prestige segment for sustainable growth. — Management acknowledged

    medium

    Revision of INTUNE breakeven target

    The store-level breakeven target for INTUNE has been pushed from FY26 to FY27, as the company works on strengthening its supply chain and operational efficiency. — Management acknowledged

    low

    Areas of Evasion(1)

    • Share price performance and retail investor returns (partially redirected to operational performance and one-on-one discussion)

    Q&A highlights

    3

    “As we speak, we have been able to do those changes, and we are seeing the aggression in terms of the sales densities. There's always a cycle of opening of stores in terms of getting the right properties and then getting those stores up.”

    Addresses concerns about INTUNE's expansion pace and performance, attributing delays to strategic improvements and confirming positive current trends.

    asked by Ashutosh Joytiraditya

    2 min read6 chapters

    Detailed Narrative

    01

    Q2 FY26 Performance Overview

    Shoppers Stop reported robust Q2 FY26 results, with overall sales rising by 7% and departmental store like-for-like growth reaching an impressive 9.4%, marking the highest in 10 years. EBITDA grew significantly by 42%, and the company successfully turned its Profit Before Tax (PBT) from a loss of ₹12 crores to a profit of ₹9 crores, representing an improvement of ₹21 crores. This strong performance was achieved despite a cautious urban consumer environment and sluggish growth in certain discretionary categories.

    02

    Success of Premiumization Strategy

    The company's strategic focus on premiumization has yielded substantial results, with the premium product mix growing by 16% and now contributing 69% of the total mix, a gain of 375 basis points. Key performance indicators demonstrated strength: Average Transaction Value (ATV) increased by 8%, driven by a 6% rise in Average Selling Price (ASP) and a 2% increase in Items Per Transaction (IPT). Customer entry also saw a 6% like-for-like growth, a positive trend observed for the first time in many years.

    03

    New Business Ventures: INTUNE & SSBeauty.in

    Shoppers Stop's new ventures, the value fashion format INTUNE and the digital beauty platform ssbeauty.in, are currently in an investment phase and are incurring planned losses. However, INTUNE showed positive like-for-like growth in Q2, an improvement from negative growth in Q1, validating its value proposition. Management expects INTUNE to be very close to store-level breakeven by FY27, a revision from the earlier FY26 target, as they continue to strengthen supply chain and operational efficiencies.

    04

    Beauty Segment Dynamics

    The beauty distribution business, Global SSBeauty (GSSB), delivered an outstanding performance in Q2, growing by an impressive 103% year-on-year. Within the core departmental stores, the beauty category outperformed, growing by 22%, with fragrances leading the charge. While the broader beauty segment is acknowledged as 'overheated,' Shoppers Stop is strategically focusing on the Prestige segment and aims for high single-digit growth in the ex-distribution beauty category in the near future.

    05

    Store Expansion and Capital Allocation

    The company outlined its expansion plans, intending to open five new departmental stores in Q3 and an additional four to five in Q4, targeting 9-10 net new stores for the fiscal year. For INTUNE, five stores are slated for Q3 and 8-10 for Q4. Despite some delays in departmental store openings due to approvals, the expansion pipeline remains active. Furthermore, the company demonstrated efficient capital management by reducing working capital by ₹63 crores in Q2.

    06

    Enhanced Customer Engagement and Loyalty

    Shoppers Stop continues to strengthen customer loyalty through its First Citizen Club, which now boasts 13 million members and contributes a significant 83% of total sales, an increase of 270 basis points. The quarter recorded the highest quarterly enrollments in the club's history, with 69% repeat purchases. The personalized service offered by personal shoppers also proved highly effective, contributing 25% to overall sales, a growth of over 300 basis points.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.