Shoppers Stop Reports Q1 Loss Amid Heat Waves and Inflation

Shoppers Stop Ltd reported a net loss of Rs 22.72 crore for the June 2024 quarter, citing subdued consumption due to prolonged heat waves, elections, and inflation. The company's revenue increased to Rs 1,069.31 crore from Rs 993.61 crore last year, but expenses also rose. CEO Kavindra Mishra outlined recovery plans.

Shoppers Stop Ltd reported a consolidated net loss of Rs 22.72 crore for the June 2024 quarter, attributing the downturn to prolonged heat waves, elections, and inflation, which dampened consumer spending.

The company had posted a consolidated net profit of Rs 14.49 crore for the same period last fiscal, as revealed in a regulatory filing.

Revenue from operations rose to Rs 1,069.31 crore, up from Rs 993.61 crore in the year-ago period, but total expenses also increased to Rs 1,104.51 crore from Rs 980.92 crore.

'The industry witnessed subdued consumption due to prolonged heat waves, elections, fewer weddings, and inflation. This has impacted our profits; however, we have a strong recovery plan,' said Shoppers Stop Managing Director and CEO Kavindra Mishra.

Recovery strategies include focusing on premium products, increased marketing investments, and enhancing customer experiences through high-end coffee shops and personal shopper services, especially during the festive season.

'We are also planning to close some unviable stores and rationalize costs during the year,' Mishra added.

(With inputs from agencies.)