Shoppers Stop Q1 FY27 Revenue Up 10%, PAT Turns Positive

Revenue: Grew by 10% Year-on-Year (YoY).
EBITDA: Grew by 40% YoY.
Profit After Tax (PAT): Turned positive at ₹5 crores, compared to a loss of ₹4 crores in Q1 FY26.
The prior year's Q1 results included a one-off gain of ₹5 crores in other income from a reversal of ROU liability due to store closures. Excluding this, the loss reduced by ₹7 crores YoY.
The core business delivered an EBITDA of ₹48 crores, an increase of 18% YoY.

Like-for-Like (LFL) Growth: Departmental store LFL business grew by a healthy 6%; total growth was 7%.
Customer Metrics: Customer entry grew by 3% for like-for-like stores and 8.5% overall.
Loyalty Program (First Citizens): Saw the highest ever additions with 2.4 lakh new recruits. The premium Black Card segment had 18,000 new enrolments and 21,000 renewals (a 69% renewal rate). The total loyalty membership base grew to 13.8 million, with a contribution rate of 85% and a repeat rate of 69%.
Premiumization: The premium portfolio contribution in stores improved by 490 basis points to 72%. The Average Transaction Value (ATV) increased by 10% to ₹5,704.
Personal Shopper Program: Contributed 26% to revenue, with sales growing 12% to ₹321 crores.
Power Categories (Non-Apparel): All top 5 categories outperformed: Watches (+24% YoY), Handbags (+18%), Fragrances (+17%), Sunglasses (+12%), and Footwear (+9%).
Store Expansion: Opened 2 departmental stores during the quarter (Inorbit Vizag and Pavilion Mall). One more store opened in July at Sindhu Bhavan, Ahmedabad, bringing Year-to-Date (YTD) openings to 3.

The strategy focuses on driving productivity and improving profitability through premiumization and rationalizing discounts.
Launched a premium Bandeya 2.0 collection in 25 stores with encouraging initial results.
Announced a future major collaboration with a leading fashion house for one of its private brands.
Optimized private brand inventory by 11% YoY.

Total Beauty business (including Global SS Beauty) revenue was ₹327 crores, registering a 15% YoY growth, led by Fragrances (+34%).
The Estée Lauder business saw a turnaround with 4.3% LFL growth after five consecutive quarters of decline.
Beauty Distribution Business: Generated revenue of ₹129 crores (equivalent to ₹200 crores GMV), with stellar growth of 53% YoY.
Store Expansion: Launched 1 boutique each of NARS and Shiseido, taking the total number of premium boutiques to 9 (4 Armani, 3 NARS, 1 Prada, 1 Shiseido).

Revenue was ₹82 crores with a YoY growth of 21%. LFL growth was 10% after four consecutive quarters of decline.
Focus on inventory freshness reduced inventory by ₹34 crores YoY and a further ₹11 crores versus March '26. The business is now at an optimal inventory level of 13 weeks cover.
Key Performance Indicators (KPIs) improved: Repeat customer mix improved to 45% and items per ticket sustained at 3.8.
EBITDA losses reduced from ₹15 crores to ₹10 crores YoY.
Mahesh Nagadev joined as Head of INTUNE business.

Grew by 58% over Q1 last year, attributed to improved UI/UX and site integration.
Average bill value grew by 6%, with power categories like watches leading growth.
Completed the integration of SSBeauty.in with the main ss.com platform, expected to deliver significant cost savings and operating leverage.

Maintained a disciplined capital allocation approach. Opened 8 stores in total during the quarter (2 departmental, 4 Beauty, 2 INTUNE) alongside 2 M.A.C shop-in-shops.
Total inventory was optimized by ₹80 crores YoY and by ₹36 crores vs. March '26.
The company is on track to be debt-free by the end of FY27. Funding for expansion is planned through internal accruals.

AI is being applied from two perspectives: Revenue Generation and Cost Mitigation.
Revenue Generation: Focus on personalization, customer activation, using camera vision to improve conversions and store layouts, and enhancing the personal shopper app.
Cost Mitigation: Sharpening back-end systems, processes, and inventory planning/optimization through demand forecasting.

Premiumization: Will continue as a core strategy. The company will launch 2 exclusive Swiss watch brands (entering India for the first time, priced ₹1-1.5 lakh) in Q2 FY27.
Growth Levers: Focus on growing consumer walk-ins, making the brand aspirational, and expanding into key markets in premium malls.
INTUNE: Expects to substantially reduce losses from Q2 onwards.
Operational Rigor: Commitment to continued inventory optimization and operational rigor remains.

Beauty Business Clarification: The flat growth in retail beauty sales (excluding distribution) was attributed to the closure of ~14 underperforming Estée Lauder standalone stores over the past year. The remaining Estée Lauder business and non-Estée Lauder portfolio are growing. The mix is approximately 60% non-Estée Lauder and 40% Estée Lauder.
INTUNE Expansion: Store expansion for INTUNE remains on hold pending further stabilization and proof of improved productivity (targeting ~₹10,000/sq ft run rate). Any future expansion would be manageable within the debt-free goal.
Beauty Distribution (GSSBB): Requires an investment of ~₹40 crores this year. Exclusivity agreements with brands are typically for 3-5 years. The business currently delivers healthy ROCEs of 16-17%.
Gross Margin: The decline in gross margin percentage is a result of the strategic shift towards premium brands (which have lower margins but higher absolute rupee profit and productivity). The focus is on the overall flow of EBITDA.
Expansion Plan: The company plans to open 9-10 departmental stores per year. Capex and expansion will be funded through internal accruals.
Seasonality: Acknowledged the seasonality of the business, with Q3 (festive season) typically being the strongest. Management expects full-year LFL growth to be around 6%.