India-based retail chain Shoppers Stop has announced financial results for the second quarter ended September 30, 2017.
During the reporting quarter, the retailer noted a 12.30 per cent decline in its revenue from Rs. 954.4 crores in the corresponding period last year to Rs. 837.6 crores. Its like-for-like sales dropped by 5.5 per cent.
Net loss for the second quarter stood at Rs. 21.80 crores while the total income remained Rs. 843.65 crores (down 12.30 per cent). In the second quarter of last fiscal, net income was Rs. 962.01 crores.
The company’s EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) margin, however, improved by 100 basis points (bps) to 6 per cent.
Shoppers Stop also made a budget allocation of Rs. 60 crores during the reporting quarter to invest in infrastructure, technology and space to make itself omnipresent. It currently operates 80 stores in 38 cities and plans to open five new stores in the coming months.
“We noted a relatively subdued second quarter due to stock and supply challenges on account of GST implementation,” said Govind Shrikhande – Customer Care Associate & Managing Director, Shoppers Stop Ltd. while commenting on the performance.
The company is optimistic about the third quarter due to the festive season.