Shoppers Stop Ltd

- Industry expected to maintain growth momentum in 2025 driven by rising disposable incomes, urbanization, and growing middle class. - Shoppers Stop expects growth through key pillars: brands, beauty business expansion, and retail store expansion. - Beauty business at consolidated level grew 3% with strong customer engagement; Global SSBeauty subsidiary reported nearly 100% sales increase. - INTUNE planned expansion of 40-60 stores in FY '26 aiming for increased productivity and sales growth. - Departmental stores targeting 6-7 new stores with focus on profitable growth and premiumization. - Like-for-like (LFL) growth of mid-single-digit expected; older stores showing improving sales productivity (10,000+ INR per sqft annualized). - Marketing and customer-centric initiatives ("India Weds Shoppers Stop", "Gifts of Love") showing encouraging results. - Expectation of improving full-price sell-through and cost benefits deriving margin expansion over next 2-3 years.

- EBITDA for FY '25 declined by 19% non-GAAP but showed a 16% increase in H2, indicating improving momentum. - Profit Before Tax (PBT) rose by 10% in the second half, showing a positive trend. - FY '26 expectations include decent top-line growth, EBITDA, and profit improvement driven by recovering customer demand. - Borrowings expected to reduce significantly in FY '26 due to inventory rationalization and funding new stores through internal accruals. - INTUNE expansion with 40-60 new stores planned in FY '26, aimed at boosting revenues and margins over the medium term. - Department store business targets profitable growth with 6-7 new stores, focusing on KPIs and customer experience. - Margin improvement expected via supply leverage, better pricing, and higher full-price sell-through over 2-3 years. - Overall, management confident of mid-single-digit same-store sales growth and higher margins in FY '26 and beyond.

The provided pages from the Shoppers Stop Limited document do not contain specific information about the company's current or expected order book or pending orders. The discussion primarily focuses on: - Store closures and performance of INTUNE and departmental stores. - Expansion plans: Opening 6-7 departmental stores and 40-60 INTUNE stores in FY '26. - Inventory management strategies including end-of-season sales and stock provisioning. - Financials related to borrowings, margins, and capital allocations. - Customer engagement through loyalty programs like First Citizen and Personal Shoppers. No explicit details regarding order book status or pending orders are mentioned in these excerpts.

- For FY '26, Shoppers Stop plans to reduce borrowings significantly by focusing on lowering working capital by INR 100 crores. - Capital expenditure for FY '26 will be funded entirely through internal accruals, indicating no immediate need for new debt or equity fundraising. - Increased borrowings of INR 137 crores in the previous year were primarily to support new businesses like INTUNE and Global SSBeauty, but the company intends to reduce this going forward. - Management's clear plan is to grow profitably and fund expansion through internal accruals rather than taking on more debt. - No specific mention of any upcoming equity fundraising was made in the provided discussion.

- FY '25 capital allocation included Rs 192 crores in fixed assets and deposits, and Rs 126 crores in working capital, primarily for INTUNE and Beauty businesses. - Increased borrowings of Rs 137 crores during FY '25 to finance new business working capital (INTUNE, Global SSBeauty) and onboarding new brands. - For FY '26, full capital expenditure will be funded through internal accruals—no external borrowings planned. - Planned FY '26 expansion includes opening 6 to 7 Departmental stores and 40 to 60 INTUNE stores. - Focus on rationalizing working capital to reduce borrowings significantly in FY '26. - Continued investments in marketing campaigns (e.g., India Weds Shoppers Stop, Gifts of Love) to drive growth.