22 September 2022, Mumbai:
The share price of Shoppers Stop has surged 125 percent in 2022 so far. In the last 12 months, it has gained more than 200 percent, nearly quadrupling investors’ wealth.
The stock rallied 73 percent in the last three months on the back of consistent improvement in operating performance with a revival in the retail sector, along with strong support from strategic pillars - repeat sales from First Citizen loyalty customers, increasing contribution from private labels, higher sales from the beauty segment and traction in omnichannel.
In the last quarter Shoppers Stop’s standalone revenue grew 13 percent above pre-Covid levels. EBITDA margin improved to 17 percent. The fashion retailer opened six new outlets -- two department stores, three beauty stores, and one at an international airport.
It has a robust pipeline of store additions in place and aims to open 12 to 15 stores in fiscal 2023, primarily in Tier II and Tier III cities. The store sizes will be around 25,000 square feet to 30,000 square feet.
Revenge shopping was the name of the game when India re-opened its doors after the pandemic. Stocks of quick-service restaurants, hotels, and fashion retailers became big beneficiaries of this theme.
