scorecardresearch
Shoppers Stop stock zooms 20% as Q2 loss narrows to Rs 3.68 crore

Shoppers Stop stock zooms 20% as Q2 loss narrows to Rs 3.68 crore

Shoppers Stop stock touched a 52-week high of Rs 335.85, rising 19.73% against previous close of Rs 280.55 on BSE.

Shoppers Stop share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages Shoppers Stop share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages

Shares of Shoppers Stop zoomed nearly 20% today after the firm reported narrowing of loss for the quarter ended September. Shoppers Stop stock touched a 52-week high of Rs 335.85, rising 19.73% against previous close of Rs 280.55 on BSE.

Earlier, the stock opened with a gain of 5.85% at Rs 296.90. Shoppers Stop share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

The small cap share has zoomed 63.12% since the beginning of this year and risen 83.66% in one year.

Market cap of the firm rose to Rs 3,583 crore on BSE.

Total 1.30 lakh shares of the firm changed hands amounting to turnover of Rs 4.13 crore.

The retail chain reported narrowing of its consolidated net loss to Rs 3.68 crore in Q2, led by a recovery in sales. The company had posted a net loss of Rs 97.70 crore in the July-September period a year ago.

Revenue from operations climbed over two-fold to Rs 642.07 crore from Rs 296.98 crore in the corresponding quarter of the previous fiscal.

Total expenses climbed 45.06 per cent to Rs 714.25 crore in Q2 against Rs 492.36 crore sales in the corresponding quarter of previous fiscal.

Shoppers Stop MD & CEO Venu Nair said, "The demand postponement triggered by the second wave of the pandemic witnessed a strong comeback in Q2."

"While July was muted with multiple lockdowns and Maharashtra completely closed, August and September witnessed a sharp recovery. Our sales more than doubled and EBITDA quadrupled against last year," he noted.

Moreover, the festive sales have been extremely reassuring, he said, adding sales recovered more than 100 per cent in East, followed by North.

 "Our performance has been very good across all segments, with Omni, Private and Beauty outperforming. We have witnessed a strong volume growth of 59 per cent (overall value growth of 90 per cent), primarily led by apparel," he said.

During the July-September quarter, sales from omni-channel grew by 103 per cent.

However, earnings for the fiscal ended March 2021 were not that impressive.

The firm reported a widening of loss to Rs 267.16 crore in last fiscal against Rs 142 crore loss for the fiscal ended March 2020. Sales fell 49% to Rs 1,748 crore in last fiscal against Rs 3,463 crore sales in March 2020 fiscal.

Shoppers Stop is engaged in the business of retailing a range of household and consumer products through departmental stores.