Shoppers Stop returns to Q1 profit as beauty, premium retail fuel 10 per cent sales growth

Mumbai: Retail therapy appears to be paying off for Shoppers Stop. The department store retailer returned to profit in the first quarter of FY27, buoyed by double-digit sales growth, a booming beauty business and continued demand for premium products, while moving closer to its goal of becoming debt free by the end of the financial year.

On a non-GAAP consolidated basis, the retailer reported sales of Rs 1,536 crore for the quarter ended June 30, 2026, up 10 per cent from Rs 1,401 crore in the corresponding quarter last year. EBITDA rose 40 per cent to Rs 43 crore from Rs 31 crore, while profit after tax stood at Rs 5 crore, reversing a loss of Rs 4 crore a year earlier.

On a standalone non-GAAP basis, sales increased 7 per cent to Rs 1,427 crore from Rs 1,337 crore. EBITDA climbed 45 per cent to Rs 37 crore, while the company posted a profit of Rs 3 crore compared with a loss of Rs 7 crore in Q1 FY26.

Under GAAP reporting, consolidated sales rose 11 per cent to Rs 1,291 crore from Rs 1,164 crore. The company reported a net loss of Rs 14 crore, an improvement from the Rs 16 crore loss recorded in the year-ago quarter.

Beauty continued to be the retailer’s strongest growth engine. The segment generated sales of Rs 327 crore, up 15 per cent year on year, with fragrances emerging as the standout category after recording 34 per cent growth. The company also reported a like-for-like growth of 4.3 per cent in its ELCA portfolio.

Customer engagement remained central to the strategy. During the quarter, Shoppers Stop conducted more than 192,000 beauty makeovers and over 400 masterclasses. Its digital community expanded to 1.6 million social media followers and 500,000 subscribers.

Global SS Beauty Brands (GSSBB), the company’s beauty distribution business, delivered its highest-ever quarterly revenue of Rs 129 crore, a 53 per cent increase over the previous year. The business now operates 572 points of sale across 29 retail partners and expanded its premium portfolio with new NARS and Shiseido boutiques in Gurugram and Mumbai.

The core department store business generated total revenue of Rs 1,242 crore, supported by 6 per cent like-for-like growth. Average transaction value increased 10 per cent to Rs 5,704, while average selling price rose 13 per cent to Rs 1,972. Customer footfalls were up 3 per cent on a like-for-like basis, marking the fifth consecutive quarter of positive footfall growth.

Premium products continued to account for a larger share of the business. The premium portfolio contributed 72 per cent of total sales during the quarter, up 490 basis points from a year ago, with sales in the segment rising 15 per cent.

The company’s value fashion chain INTUNE also showed signs of recovery. After four quarters of flat performance, the format posted 10 per cent like-for-like growth and revenue of Rs 82 crore, up 21 per cent year on year. EBITDA losses narrowed to Rs 10 crore from Rs 15 crore as the retailer expanded its Rs 1,299 price range, accelerated inventory clearance and benefited from a 45 per cent customer repeat rate. Customers purchased an average of 3.8 items per transaction.

Loyalty remained a major contributor to sales. The First Citizen programme accounted for 85 per cent of total quarterly revenue and expanded to more than 13.8 million members.

The premium Black Card tier added more than 39,000 members, a 26 per cent increase over last year, with Black Card customers contributing 23 per cent of total sales. The Silver Card programme enrolled 202,000 new members during the quarter, while the retailer’s Personal Shopper service contributed 26 per cent of overall sales after growing 12 per cent year on year.

Marketing campaigns also supported demand. The fifth edition of the “India Weds with Shoppers Stop” campaign generated Rs 175 crore in sales, attracting 58,000 registrations and adding 11,000 new loyalty members. Its “Get Spotlight Ready” campaign, launched with HYBE India, sold more than 6,000 BTS Arirang albums and added 4,400 new members. The “Travel Edit” campaign helped drive a 21 per cent increase in travel-related merchandise sales.

During the quarter, the retailer invested Rs 44 crore in capital expenditure to expand its footprint. It opened eight new stores, comprising two department stores, four beauty outlets and two INTUNE stores, along with two MAC shop-in-shop locations. Shoppers Stop now operates 288 stores across 73 cities, covering 4.5 million square feet of retail space.

The company also continued to strengthen its balance sheet. Standalone borrowings were reduced by Rs 93 crore year on year to Rs 166 crore from Rs 260 crore. At the same time, it invested Rs 50 crore into GSSBB to support the expansion of its beauty distribution business.

Inventory management also improved, with overall inventory declining by Rs 80 crore compared with last year and by Rs 36 crore since March 2026. Private brand inventory fell by around 11 to 12 per cent, while INTUNE inventory was reduced by Rs 34 crore.

On the sustainability front, the retailer adopted 100 per cent biodegradable polybags and shifted 91 per cent of its brand tags to FSC-certified paper.

Shoppers Stop managing director and chief executive officer Kavindra Mishra said disciplined execution, inventory optimisation and a continued focus on premiumisation had strengthened the company’s performance. He added that with improving demand, tighter supply chain management and continued debt reduction, the retailer remains on course to become debt free by the end of FY27.