SHOPERSTOP

: Premium Push & Strategic Expansion Drive Recovery

Footfalls rise, beauty and value formats gain traction 🔹 Footfall Recovery & Premiumization Strategy - After several weak quarters, footfalls rose 6% like-for-like in Q2 FY26. - Premiumization and exclusive brand tie-ups helped differentiate the in-store experience. - Exclusive brand lines increased by 300–400 basis points, enhancing customer appeal. 🔹 Store Network & Format Diversification - Operates 111 department stores, 10 home-concept outlets, and 84 beauty stores. - Value fashion brand Intune has 78 stores, targeting young families with sub-₹999 pricing. 🔹 Financial Performance Highlights - Q2 sales grew 10% YoY to ₹1,175 crore; premium segment contributed 69%. - Private labels generated ₹161 crore, forming 13% of total sales and 17% of apparel revenue. - EBITDA rose 11% to ₹173 crore; ASP up 6%, ATV up 8%, IPT up 2%. 🔹 Core Business & Segment Growth - Core revenue (department, beauty, home, and online) increased 7% to ₹1,346 crore. - Beauty sales surged 22% YoY to ₹331 crore; Intune sales jumped 170% YoY to ₹70 crore. - Three new beauty stores opened during the quarter. 🔹 Analyst Commentary - Results exceeded expectations; revenue growth driven by premiumization and brand investments. - Margins held steady due to cost control, despite higher brand-related spending. - Intune showed sequential improvement with 1% like-for-like growth. 🔹 Store Experience Revamp - Enhancing stores with cafes, gaming zones, and kids’ areas to attract foot traffic. - Focused on high-street locations to compete with fast fashion and value retailers. 🔹 Competitive Landscape - Faces pressure from global brands (Zara, H&M, Uniqlo) and domestic value players like Zudio. - Intune targets young families, not Gen Z, with refreshed store design and weekly merchandise updates. 🔹 Expansion Plans - Capex of ₹160–200 crore earmarked for FY26 to grow value and beauty formats. - Plans to open 15 more Intune stores in H2 FY26, despite missing Q2 guidance.