Q4FY22 Result Update - Shoppers Stop - ICICI Direct

Covid-led disruptions in January-February and one-off expenses (~Rs. 21 crore) led to a subdued performance in Q4FY22. The revenue recovery rate declined to 90% in Q4FY22 vs. 96% in Q3FY22.

- On a favourable base, revenue grew 6% YoY to Rs. 709.9 crore

- Increase in operating costs (owing to higher store additions) and one-off expenses (Rs. 21 crore) led EBITDA margins to decline 343 bps YoY to 10.8% with absolute EBITDA declining 20% YoY to Rs. 76.7 crore

- PBT losses were at Rs. 49 crore vs. Rs. 37.2 crore in Q4FY21

Key triggers for future price performance

- We believe the new MD (former Westside CEO) would bring in his expertise in the private label brands domain and focus on enhancing the share of high margin private label brands (~14% of revenues)

- It has embarked on a healthy store addition plan with the opening of 12 departmental stores and 15 beauty stores in FY23E. Majority of the store additions in Tier II/III cities. Capex for the same is expected to be Rs. 150 crore, which will be funded mainly through internal accruals

- The management expects steady SSSG growth of 9-11% in the near term

- Key thrust on accelerating investments in omni-channel with long term target of channel contributing 20% of sales from current ~8%

- Higher focus on beauty segment (currently ~17% of revenues) through scaling up of its own private brand Arcelia

For details, click on the link below: Link to the report

Shares of Shoppers Stop Limited was last trading in BSE at Rs. 494.75 as compared to the previous close of Rs. 502.60. The total number of shares traded during the day was 56845 in over 2190 trades.

The stock hit an intraday high of Rs. 515.35 and intraday low of 482.80. The net turnover during the day was Rs. 28210746.00.

Source : Equity Bulls

Keywords

ShoppersStop INE498B01024 Q4FY22 FY2022 ResultUpdate ICICIDirect