Shoppers Stop Q4 Results Review - Earnings Growth Remains Strong: Motilal Oswal

Motilal Oswal Report

Shoppers Stop Ltd. continued its stellar performance with 29% YoY revenue growth (inline), led by record mid-teens same-store sales growth.

The gross margin saw a YoY improvement of 310 bps, primarily led by higher brand commission from meeting year-end sales target, and improvements in the private label and beauty mix. Subsequently, Ebitda saw two times YoY jump and profit after tax turned positive YoY.

The addition of 10 new stores in departmental and beauty segments, along with mid-single-digit SSSG and increased share of private label and beauty biz is expected to drive revenue/Ebitda compound annual growth rate of 14%/17% over FY23-25E.

With soft footfall trends, and price hike benefits behind, SSSG growth will be a key monitorable.

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