(Reuters) -Indian department store Shoppers Stop posted a marginally narrower second-quarter loss on Friday and said it expects demand to rise during festivals.
Spending on beauty and premium fashion surges during India’s October–December festive season, a crucial period that drives most retailers’ annual sales. India’s tax rate cuts aimed at boosting spending ahead of the wedding and festive season are also expected to help retailers.
“We are stepping into a busy festive period, that and with the upcoming wedding season, I am confident the coming season should deliver strong results,” Kavindra Mishra, MD and CEO at Shoppers Stop, said.
The firm, which houses luxury labels like Armani Exchange and Michael Kors, is doubling down on high-growth categories such as beauty and premium apparel to tap into the country’s rising base of affluent shoppers.
For the quarter ending September 30, sales from its premium beauty segment rose 22%, and comparable store sales were up 9.4% from a year ago.
Its consolidated net loss stood at 201.1 million rupees ($2.29 million) for the quarter against a loss of 205.9 million rupees a year earlier.
The retailer’s total revenue rose nearly 13% to 12.57 billion rupees.
Its shares closed flat at 519.35 rupees.
Peers Trent and Arvind Fashions have yet to report their earnings. Trent is due on November 7.
($1 = 87.9387 Indian rupees)
(Reporting by Mridula Kumar; Editing by Mrigank Dhaniwala)
