Shoppers Stop Reports Fourth-Quarter Loss Amid Sluggish Discretionary Spending

Shoppers Stop Reports Fourth-Quarter Loss Amid Geopolitical Uncertainty

Mumbai-based retailer Shoppers Stop reported a net loss of 163.5 million rupees ($1.72 million) for the three months ended March 31, marking a reversal from a profit of 19.9 million rupees in the same period last year. The loss was largely attributed to subdued discretionary spending amid geopolitical uncertainty in the Middle East, supply-chain disruptions, and rising inflation.

India's retail inflation rose to about 3.4% in March, driven by higher food prices, which added to cost-of-living concerns. Analysts expect the broader consumer sector to post a subdued quarter. Shoppers Stop's total expenses rose about 14% to 12.42 billion rupees, eclipsing a 13.7% rise in revenue from operations to 12.1 billion rupees.

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Shoppers Stop's beauty segment, which houses brands like Nars, Prada, and Maybelline New York, reported a revenue growth of 17% to 3.09 billion rupees. The retailer, which carries brands such as Swarovski, Versace, Michael Kors, and Bobbi Brown, cited supply-chain disruptions as a key challenge. CEO Kavindra Mishra stated that while supply-chain disruptions may create inflationary pressures, the demand outlook is expected to remain healthy.

Trent, a peer company owned by the Tata Group, reported a 26% jump in quarterly profit to 4 billion rupees last month. Other retailers, including Arvind Fashions and Aditya Birla Fashion and Retail, are expected to report quarterly results in May.