Shoppers Stop’s ‘transformational phase’ leads to drop in profit for Q3
India’s leading retail chain Shoppers Stop Limited (SSL) profits were down 14 percent to Rs 16 crore for the third quarter ended December 31 with the company calling the quarter a transformational phase in the group’s retail journey.
However, the company remains optimistic that losses will decline in the coming quarter due to its divestment in various stakes. It is also confident that its partnership with Amazon India will show traction in next quarter thereby resulting in strong numbers for Q4.
SSL’s revenue for the quarter dropped 5 percent to Rs 967 crore (approx $152 million) as compared to RS 1020 crore (approx $160.4 million) it had posted during the same quarter last fiscal.
The company also managed to reduce its expenses from Rs 987 crore (approx $155.3 million) last year to Rs 923 crore (approx $145.1 million) for this fiscal.
"Q3 has been a transformational phase in Shoppers Stop Retail Group's journey. We divested our stakes completely in Hypercity Retail and NGIPL the Duty-free airport venture. It has also finalised exiting TimeZone Entertainment Ltd the gaming business. All these exits will reduce debt and stop losses and thereby completely changing the balance sheet for the year FY18-19, Shoppers Stop Customer Care Associate and MD Govind Shrikhande said in a statement.
“Our tie-up with Amazon will start showing traction from Q4 of FY17-18. The investment by Amazon along with our marketplace tie up strengthens the company’s omni channel strategy”, he added.
The company added two Shoppers Stop stores, 4 MAC stores, 4 Clinique stores, 2 Bobbi Brown store and 2 Smash Box stores during the quarter.
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