The company said it it has returned to "profitability" with a zero net debt.

On a standalone basis, Shoppers Stop's net profit of Rs 50.18 crore in Q3 December 2021 as against net loss of Rs 20.71 crore in Q3 December 2020. Backed by a strong sales rebound, the company's revenue improved by 35% year-on-year to Rs 1070 crore in Q3 December 2021, close to pre-covid levels.

Earnings before interest, tax, depreciation and amortization (EBITDA), up by 57% to Rs 197 crore while the gross margin grew by 170 basis points to 36%. EBITDA performance was driven by robust demand recovery and tight control on costs. E-commerce sales continues to grow rapidly, rising 39%.

Venu Nair, MD & CEO at Shoppers Stop, said, "We are witnessing positive signs from a strategy that we initiated in the last 2 years. As the fashion and beauty retail is seeing encouraging early trends from the Wardrobe Reboot, we are rightly poised to capture the pent-up demand. Customer sentiments are extremely positive owing to the double vaccination, lesser restrictions and an overall improvement in safety protocols, leading to increased customer footfalls for us."

"The Company has seen a sustained demand during the festive period and the marriage season in October and November. We have witnessed a high customer spend and a higher Average Transaction Value (ATV). While Omnichannel is here to stay, our present online contribution gives us immense headroom to grow," he added.

First Citizen Loyalty Customers continued to demonstrate a strong growth trajectory, with offline accounting for 72% of sales and online 42% (up by 160 bps).

Private brand sales improved 32% while the margins widened by 160 basis points. The segment contributed 14% of the overall sales wherein apparels contributed 18% and online sales 17%. Beauty sales mix accounted for 17% of total sales which grew by 75 bps in Q3FY22.

The company opened 5 stores, 3 on departmental and 2 on beauty. It has 10 stores currently under fit-out, which are expected to open in the next quarter.

The company said it expects an accelerated growth trajectory now, driven by a robust recovery from the lockdown blues, accelerated small size store expansion, growth in the private-label mix, and an increased focus on high growth beauty business. The third wave may cause a small blip in the growth trajectory. Given the underlying business fundamentals, the enhanced digital capabilities and the balance sheet strength, Shoppers Stop said it is well poised to embark on a new wave of growth and create value for all stakeholders.

Shoppers Stop is the nation's leading premier retailer of fashion and beauty brands.