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Shoppers Stop
Our verdict on Shoppers Stop isn’t the consensus take — see where we landed, and the one risk the bull case glosses over.
See the verdict — free →Does management do what it says?
INTUNE reported a very low like-for-like growth of 1% in Q2, significantly below the high single-digit guidance, though it improved from negative growth in Q1. (1 missed across 1 tracked commitment)
“is a high expectation of at least high single-digit to low double-digit kind of an SSG. Would you echo with that sentiment? ... Devang Parikh: No, we would. I think that's what we are seeing also.”
Management maintains a cautiously optimistic outlook for 2025, leveraging AI and automation for efficiency.
“Cautiously optimistic' for 2025, in which new-age technologies such as AI and automation will play a crucial role, driving efficiency and personalisation”
INTUNE stores that are 6 months or older are expected to clock an annualized revenue per square foot north of 10,000. — target: > 10,000 SPF
“So older stores, Gaurav, are north of 10,000 SPF on an annualized run rate.”
The company is focusing on the Prestige segment in Beauty to ensure sustainable and profitable growth. (+1 more commitment)
“Consistent launches within Premiumization to improve share to 70% by FY26 end”
The company targets a mid-single-digit EBITDA margin or slightly better for the core business for the full year FY2026. — target: mid-single-digit (+2 more commitments)
“we should be able to see a mid-single-digit EBITDA margin or slightly better than mid-single-digit EBITDA margin for the core-business... I am talking for the full year. With that, we should be able to see for the full year a good EBITDA margin.”
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How durable is the business?
The distribution moat in luxury beauty is expanding aggressively, with sales from the Global Beauty distribution business doubling (+103% YoY) and the network reaching 526 points of sale. (1 expanding)
“Beauty Distribution- Outcome... Sales 106 (FY26) vs 52 (FY25) Gr% 103%”
The Departmental stores segment is showing signs of recovery with a 3.5% like-for-like growth and improving customer entry trends, turning positive in April. (5 expanding across 1 engine)
“Core Business Sales 1,516 FY26... EBITDA 90”
The distribution moat is expanding through new exclusive partnerships (e.g., Messi The Fragrance) and network expansion to 512 points of sale. (1 expanding)
“Network expanded 512 POS (+68 POS YoY) with 25 retailers... Launched “Messi The Fragrance” in India”
The beauty distribution business (Global SS Beauty) continues to be a high-growth engine, nearly doubling its annual sales and expanding its network to quick commerce platforms like Zepto. (1 expanding)
“Global SS Beauty Brands Limited... year to date Sales of Rs 236 Cr with profitable growth... +98% YoY”
The value fashion format INTUNE is expanding aggressively, growing sales 5x year-over-year and adding 52 stores during the fiscal year. (5 expanding across 1 engine)
“New Ventures* Sales 83 FY26... EBITDA -20... *New Ventures Includes INTUNE and SSBeauty.in”
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Where does growth come from?
INTUNE is showing rapid revenue scaling, with Q3 sales nearly doubling compared to the previous year. The format is nearing store-level EBITDA breakeven. (5 accelerating across 5 signals)
“INTUNE sales at Rs 77 Cr, +22% YoY growth”
The company is maintaining an aggressive expansion pace, particularly for its value format INTUNE, despite regulatory delays in North India. They plan to open 32 stores across all formats in Q4 FY25 alone. (5 steady across 5 signals, 1 leading indicator)
“Planning to open 5 Department stores, 3 INTUNE and 2 Beauty Stores in Q4”
The Global SS Beauty subsidiary is doubling its revenue year-to-date, with EBITDA growing 4x in the current quarter. The company aims to become India's top beauty distributor within 2 years. (5 accelerating across 5 signals)
“Beauty Sales Rs 395 Crs grew by 14%... Sales and Contribution % [increased to] 23%”
The premiumization trend is steady and resilient, with premium products consistently outperforming other categories and driving margin expansion. (1 steady across 1 signal, 1 leading indicator)
“FRATINI Girls, a new apparel line for young girls, received a positive initial response across 8 stores, with plans to expand the range to 60 stores.”
The company is investing in 'Omnichannel' technology (integrating online and offline shopping) to ensure they can reach customers however they choose to shop.
“Higher expenses reflect strategic investments in marketing, customer acquisition, and omni-channel technology build-out”
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Shoppers Stop analysis by filing period
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