Shares of retail chain operator, Shoppers Stop, rallied in an otherwise weak market. The stock jumped as much as 17.58 per cent to hit fresh 52-week high of Rs 425 on the BSE on Friday after it reported strong earnings for the quarter ended December 2021 after market hours.
On Thursday, Shoppers Stop reported a consolidated net profit of Rs 77.32 crore for the third quarter ended December 2021 compared with loss of Rs 25 crore in the same quarter last year.
Its revenue from operations jumped 34 per cent at Rs 958 crore during the period under review, against Rs 715.97 crore in the corresponding quarter of the previous fiscal.
Shoppers Stop total expenses were at Rs 905.14 crore, up 16.23 per cent in Q3 FY 2021-22, compared to Rs 778.78 crore.
"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," Shoppers Stop MD & CEO Venu Nair said.
On the BSE, the stock opened at Rs 390.70, then jumped 17.58 per cent and touched its 52-week high of Rs 425 in initial deals. On the NSE, the stock followed a similar pattern, it opened at Rs 394.30, registering a gain of 17.56 per cent over its last close. It was later trading at Rs 401.05, up 10.94 per cent.
“Encouraged by the strong rebound, the company 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,” Shoppers Stop said in a stock exchange filing.
As of 12:54 pm, Shoppers Stop shares traded 9 per cent higher at Rs 394, outperforming the Sensex which was down o.5 per cent.