Shoppers Stop Limited · NSE:SHOPERSTOP
Shoppers Stop — Q1 FY20 Earnings Presentation
31 slides from Shoppers Stop's earnings presentation, Jul 30, 2019
Slide 1: Updated investor presentation cover letter
SHOPPERS STOP SEC/041 A/2019-20 July 30, 2019 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Fort, Bandra-Kurla Complex, Bandra (East), Mumbai 400 001. Mumbai 400 051. Stock Code : 532638 Stock Symbol : SHOPERSTOP Dear Sirs, Sub: Updated
Slide 2: Quarterly Performance: Q1 FY20
Quarterly Performance : Q1 FY20 1
Slide 3: Vision
VISION VISION “To be an inspirational and trusted brand, transforming customer’s lives through fashion and a delightful shopping experience every time.” Great moments for everyone, everyday 2
Slide 4: Our Customer
OUR CUSTOMER Our Core customer is a young family where the woman is the primary influence. These upwardly mobile, middle to high income family shops across our stores for the widest selection of brands. We have a fast growing base of young consumers of 18-25 years of age. These customers are shoppin
Slide 5: Shoppers Stop at a Glance
SHOPPERS STOP AT A GLANCE • 83 Department Stores across 40 cities • 120 Beauty Doors • 12 HomeStop Stores • 400+ Fashion Brands • 32 Fashion Categories • 4.2M sq.ft retail space • 41M customers served annually 4
Slide 6: Strategic Pillars
First Citizen Program Personal Shopper Program Strategic Pillars Priv ate Brands Beauty 5
Slide 7: First Citizen Loyalty Program
FIRST CITIZEN LOYALTY PROGRAM 6.32M 82% F IRST CITIZEN LOYALT Y CONTRIBUTION TO PROGRAM MEMBERS C O MPANY S ALES • Key Growth Engine for Business • Record enrollment in Q1: 0.26M with 47% growth YoY, exhibiting strong affinity towards our brand. • Increased contribution 82% Vs 78% LY (Q1-19) • 15% o
Slide 8: Personal Shopper
PERSONAL SHOPPER 17%+ PERSONAL SHOPPER 2.5 times AVERAGE PERSONAL CONTRIBTUON TO SALES SHOPPER TICKET SIZE Providing a delightful shopping experience with our Personal Shopper Service. % Personal Shopper Contribution 17.3% 15.6% 13.8% 12.9% 12.1% Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 7
Slide 9: Private Brands
PRIVATE BRANDS 12%+ CONTRIBUTION TO TOTAL SALES • Design Studio, sampling unit and testing labs are now operational. The first collection by our new Chief Creative Officer to be launched in AW19. • Launching 4 new brands in AW19 • Jones New York • French Connection, exclusive for Department Stores •
Slide 10: Beauty
BEAUTY 150+ 15%+ CONTRIBUTION TO TOTAL BEAUT Y BRANDS SALES • Continue dominance in Beauty segment across all channels. • India’s first true Luxury multi-brand Beauty concept viz, Arcelia launched at GVK Shopping Mall Hyderabad and performing to plan with exciting niche brands • MAC stores launched
Slide 11: Digital Footprint: Omni Channel
DIGITAL FOOTPRINT Omni Channel Symbiotic Relationship of Clicks & Bricks +14.6M +25,000 +6M VISITS PIN CODE COVERAGE MOBILE APP DOWNLOAD • Platform frequently used by Millennials and Young Professionals to converse with us • Buy Online and Collect from the Store (50 stores ) • Ship from Store for fu
Slide 12: Our Team
Dev adas Nair OUR TEAM Amin Kassam Customer Care Associate & Customer Care Associate & Chief Retail Operations Chief Supply Chain Officer Amitabh Suri Karunakaran Mohanasundaram Customer Care Associate & President Private Brands Customer Care Associate & Chief Finance Officer Anil Shankar Maneesh Mi
Slide 13: New In-Store Experience - Q1FY20: Vasant Kunj
NEW IN-STORE EXPERIENCE - Q1FY20: VASANT KUNJ, PERFORMING TO DOUBLE DIGIT GROWTH Designed by : Schwitzke Group, Dusseldorf, Germany 12
Slide 14: New Store Additions - Q1FY20: Guwahati
NEW STORE ADDITIONS- Q1FY20: GUWAHATI, PROFITABLE FROM 1st MONTH OF OPERATIONS 13
Slide 15: New Store Additions: Arcelia-GVK Hyderabad
NEW STORE ADDITIONS DURING Q1-19-20: ARCELIA-GVK HYDERABAD • Area : 3500+ sq.ft • Key Brands : MAC, Clinique, Bobbi Brown, Estee Lauder, Dior, Guerlain, Givenchy, Tom Ford Fragrances 14
Slide 16: New Store Additions: MAC
NEW STORE ADDITIONS DURING Q1-19-20 - MAC GUWAHATI KHAN MARKET - DELHI 15
Slide 17: New Additions: Design Studio Opened on 7th May
NEW ADDITIONS DURING Q1-19-20 : DESIGN STUDIO OPENED ON 7TH MAY 16
Slide 18: Brand Campaigns
BRAND CAMPAIGNS • #SharemyNew Year video had 8M views • 60% Full views on Youtube • Won Masters of Modern Marketing Award - Best Multi Channel Campaign by a Retail enterprise - Share My New Year by Shoppers Stop • Was covered in 11 publications including Economic Times -Brand Equity 17
Slide 19: Brand Campaigns
BRAND CAMPAIGNS Women's Day Campaign – Its Our Time • Promoted on 18 HD television channels for 2 weeks • Campaign delivered ca. 5.1M views • Covered in Impact and Outlook Business 18
Slide 20: Financial Highlights (Non GAAP)
FINANCIAL HIGHLIGHTS (NON GAAP) Sales Gross Profit 1,099 1,034 1,048 368 337 343 862 295 Q1 FY17 Q1 FY18 Q1 FY19 Q1 FY20 Q1 FY17 Q1 FY18 Q1 FY19 Q1 FY20 EBITDA YoY productivity improvement 50 • Sales 5%+ 43 • Gross Profit 8%+ • EBITDA 15%+ 32 26 Q1 FY17 Q1 FY18 Q1 FY19 Q1 FY20 19
Slide 21: Financial Highlights
FINANCIAL HIGHLIGHTS Non GAAP Revenue Gross Profit EBITDA Margin PBT Q1-19-20 1099 Cr 368 Cr 4.6% 16 Cr Q1-18-19 1048 Cr 343 Cr 4.1% 14 Cr GAAP Revenue Gross Profit EBITDA Margin PBT Q1-19-20 848 Cr 356 Cr 16.9% 4 Cr Q1-18-19 827 Cr 339 Cr 5.9% 15 Cr 20
Slide 22: Ind AS 116 Accounting of Lease Rentals - Modified Retro Approach
AS – 116 Accounting of Lease Rentals – using Modified Retro Approach International Accounting Standards Board issued Impact on Balance Sheet IND-AS 116 Impact on Income Statement IFRS 16 which replaces the existing IAS 17 for as of 1 April 2019 for FY20 financial periods beginning on or after 1 Ja
Slide 23: Q1 FY20 Financial Results Explanation of Non-GAAP Measures
Q1:FY20 FINANCIAL RESULTS EXPLANATION OF NON-GAAP MEASURES To supplement our financial results presented on a GAAP basis, we presented a table without reference to IND AS 109 (Interest Income on present value of Security Deposits), IND AS 115 Revenue Recognition (effective from April 1 2018) and IND
Slide 24: Q1 FY20 Financial Results Explanation of Non-GAAP Measures
Q1:FY20 FINANCIAL RESULTS EXPLANATION OF NON-GAAP MEASURES IND AS 116 –Lease Rentals The Ministry of Corporate Affairs (MCA) has mandated a new Accounting Standard AS 116 for accounting the Lease Contracts. The new standard will require Lessees to recognize leases on their balance sheets, instead of
Slide 25: Financial Overview: Shoppers Stop Limited Q1FY20
FINANCIAL OVERVIEW : SHOPPERS STOP LIMITED : Q1FY20 Non - GAAP Financials GAAP Financials Q1-20 Q1-19 Gr% Q1-20 Q1-19 Gr% Revenue 1,099.5 1,048.2 4.9% 832.4 826.6 0.7% Other Income 15.5 13.9 11.5% 2.4 7.2 -66.4% Total Revenue 1,115.0 1,062.0 5.0% 834.8 833.7 0.1% Margin 368.1 342.5 7.5% 355.9 338.9
Slide 26: Financial Overview: Balance Sheet
FINANCIAL OVERVIEW : BALANCE SHEET Particular Jun-19 Mar-19 Networth 997.5 977.6 Loan Fund 30.0 40.0 Total Liabilities 1,027.5 1,017.6 Fixed Assets & Lease Deposit 816.0 808.3 Investment 284.7 266.7 Investment in Mutual Fund 30.0 42.5 Inventory 387.2 367.5 ROR Inventory 702.0 686.0 Debtors , loans a
Slide 27: Financial Overview: Cash Flow
FINANCIAL OVERVIEW : CASH FLOW Particulars Rs in Crs. Cash Profit from Operations (after tax) 50.1 Increase in Creditors for Goods 74.1 Increase in Other Creditors and Liabilities 9.2 Increase in Inventories (35.6) Increase in Loans & Advances & Sundry Debtors (47.2) Cash generated from Operations 5
Slide 28: Financial Overview: Key Financial Ratio
FINANCIAL OVERVIEW : KEY FINANCIAL RATIO Profitability and Efficieny Ratios Valuation Parameters Year To March Q1-FY20 FY19 FY18 FY17 FY16 Year To March FY19 FY18 FY17 FY16 Inventory Days 103 142 120 116 138 Adj. Diluted EPS 9.0 1.4 -2.4 3.0 Adjusted Cash EPS 24.3 15.5 11.5 14.6 Debtors Days 5 4 4 3
Slide 29: Awards
AWARDS • Shoppers Stop awarded by Titan for Outstanding Performance in FY19 • Shoppers Stop awarded for Best Omnichannel Customer Experience and Best Digital Customer Experience Strategy • Shoppers Stop Bangalore Airport Store wins : • Best Customer Choice in Retail • Best Performing Commercial for
Slide 30: Disclaimer
DISCLA IM E R Certain statements in this release concerning our future growth prospects are forward-looking statements within the meaning of applicable securities laws and regulations, and which involve a number of risks and uncertainties, beyond the control of the Company, that could cause actual r
Slide 31: Contact investor@shoppersstop.com
In case of any clarifications please contact on investor@shoppersstop.com 30