Investing.com– Shares of Shoppers Stop Ltd (NS:SHOP) surged on Wednesday, following the company announced a sharp increase in quarterly profit after two consecutive quarters of losses.
The department store chain reported on Tuesday a consolidated net profit of 522.3 million rupees ($6.03 million) for the third quarter ending December 31, marking a nearly 41% increase from 368.5 million rupees in the same period last year.
Shares of the company jumped nearly 10% to 688.70 rupees on Wednesday.
The strong performance was driven by increased demand for premium products, such as watches and perfumes, during India’s festive season from October to December—a critical period for retailers.
Revenue from operations rose by 11% to 13.79 billion rupees, with premium categories contributing 64% to overall revenue, up 9% year-on-year.
The company’s focus on premiumization appears to be paying off, as consumers continue to spend on luxury items despite broader economic uncertainties. This strategy, combined with the festive season boost, has enabled Shoppers Stop to rebound strongly in the third quarter, positioning it well for future growth.