Shoppers Stop’s profit grows on higher beauty products demand, segment grew 29% in Q4FY23

Shoppers Stop’s beauty segment grew by 29 per cent for the fourth quarter of financial year 2022-23 with the company’s consolidated revenue at Rs 923.90 crore for the quarter. Shoppers Stop benefitted from a strong demand for beauty products and also higher margin private-label clothing. “The Beauty segment grew by 29 per cent. For the full year, our private brands and beauty grew by 70 per cent and 54 per cent respectively,” said Venu Nair, MD & CEO, Shoppers Stop. Shoppers Stop posted a consolidated net profit of Rs 14.26 crore for the fourth quarter ended March 31, 2023.

While the beauty segment which houses retail of brands like L’Oreal, Clarins and Earthi, as well as its private label Arcelia, recorded a revenue of Rs 197 crore during the fourth quarter, up 29 per cent on-year, private brands posted a revenue of Rs 158 core, up 35 per cent on-year. The total contribution of the beauty and private brand categories to the overall performance of Shoppers Stop was at 17 per cent and 14 per cent respectively.

However, on the full year terms, Shoppers Stop private brands reached a revenue of Rs 723 crore, up 70 per cent on-year and the beauty segment went up 54 per cent on-year to reach Rs 804 crore. During FY23, Shoppers Stop also acquired exclusive distribution for 15 beauty brands and opened 12 beauty stores, refurbished 5 beauty stores. “We have begun distributing premium beauty brands since last quarter. We have added 15 brands with exclusive distribution rights and on-boarded 10+ retailers during the year,” said Venu Nair.

He added, “to enhance customer experience, we renovated 11 department stores and 5 beauty stores. With this more than 60 per cent of our stores will have the new renewed appearance.” HUL also added that it did 112K makeovers during the quarter which led to strong customer engagement, and generated sales of Rs 40 crore. As of March 31, 2023, Shoppers Stop had a total beauty store count at 142 outlets, including 57 shop-in-shops. The large format store chain also said that it launched a total of 40 SKUs in the Arcelia brand during the quarter, taking the portfolio to 450+.

Shoppers Stop, in the regulatory filing, also announced additional investment in its subsidiary of Global SS Beauty Brands Limited. “We are pleased to inform you that the Board of Directors of Shoppers Stop Limited at its Meeting held on April 26, 2023, have inter-alia approved additional investment in Global SS Beauty Brands Limited of upto Rs. 25 Crores in one or more tranches,” the company said in the regulatory filing.

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