Its Managing Director and Chief Executive Officer Venugopal G. Shares of Shoppers Stop fell 8 per cent to Rs 747 per share on the BSE in intraday trade on Friday after Nair resigned from the post.

At 9:20 am, the shares were trading at Rs 750, down 7.6 per cent, while the benchmark S&P BSE Sensex was down 0.5 per cent at 64,912.

“Venu Nair, Managing Director and Chief Executive Officer of the Company, has tendered his resignation with effect from the end of business hours of August 31, 2023, due to personal reasons, so that he can spend more time with his family and explore other avenues.” Option. The Board of Directors of the company in its meeting has accepted his resignation,” the company said in an exchange filing.

Further, the Board has approved the appointment of Kavindra Mishra as Additional Director of the Company with effect from September 1, 2023. He has also been promoted from the position of Chief Commercial Officer & CEO – Homestop to the position of Executive Director & CEO of the company. Period of three years with effect from 1st September, 2023.

The company said that to ensure a smooth transition, Nair will continue to guide and mentor Mishra as an officer of the company over the next 6 months.

Prior to joining Shoppers Stop as Chief Commercial Officer & CEO – Homestop, Kavindra Mishra was the MD & CEO of House of Anita Dongre. Prior to this, he served as MD at Pepe Jeans India for a period of six years and managed the transformation of the company from a joint venture into a 100 per cent subsidiary of Pepe Jeans Global.

Mishra was the co-founder at Zovi.Com, a start-up funded by Tiger Global and SAIF Partners.

The change comes at a time when the retail and apparel sector is facing inflationary headwinds.

He said, despite the uncertainty in the short term, India is expected to deliver a strong growth trajectory in the apparel and retail sector in the years to come. In addition, the domestic casual wear market has grown tremendously over the years and categories such as denim, active wear, casual shirts and fashionable skirts are overtaking the growth of formal wear in India, reflecting the changing consumer trends and the need for casual wear in offices. Shows increasing use. As well as the house.

Analysts at Phillip Capital said in a recent report, “With this positive impetus, the Indian apparel market, which stood at $80 billion in 2022, is expected to reach $160 billion by 2027 with an expected growth rate of 15 per cent CAGR.” “

Meanwhile, financially, the retail chain reported a 36.5 per cent decline in consolidated net profit at Rs 14.49 crore in the June quarter (Q1-FY24). The company had posted a net profit of Rs 22.83 crore in the April-June period a year ago.

Revenue from operations in the first quarter of this financial year was Rs 993.61 crore, up 4.76 per cent as against Rs 948.44 crore in a year-ago period. Moreover, Shoppers Stop’s Q1-FY24 same store sales growth (SSSG) was 1 percent.

Its performance was mainly driven by the non-apparel and beauty segments as the apparel segment witnessed weakness. The management highlighted that the softening is expected to continue in the coming quarters due to festivities in Q3-FY24.

“We understand that SHOP has now successfully fine-tuned its business model and is well positioned to drive growth from its four strategic pillars. We expect revenue/EBITDA to grow by 12 per cent during FY23-25. /15 per cent CAGR. We broadly maintain our EBITDA estimates for FY2014/25. We maintain Buy on the stock with a target of Rs 960, said analysts at Antique Stock Broking .

However, the folks at HDFC Securities retained their ‘Sell’ outlook on Soprs stop as it missed expectations – both on top line and margin. Gross margin was flat at 42.3 percent (up 12bps), while Ebitda margin stood at 17.6 percent (up 31bps).

“STOP’s focus on scale recovery and store expansion is certainly encouraging; however, inventory management needs to be worked on. Long-term risks to the relevance/longevity of the business remain as the company deals directly with deep-pocketed e-tailers.” We revise down our FY25/26 EBITDA estimates to 2.6/2.5 per cent, respectively, to reflect higher spend on new initiatives and maintain our sell recommendation with an unchanged price tag of Rs 560,” the brokerage said. There has been a decline.

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