Saturday, November 14, 2009

Retail players have reported better results for the September quarter

Retail players have reported better results for the September quarter as compared with the year-ago period.

Pantaloon Retail (India)'s numbers were in line with street expectations. Revenues increased 17.5%, driven by higher contribution from the higher-margin lifestyle stores. Same-store sales for value retailing increased by around 7% and for lifestyle retailing by about 11%. Operating profit margins increased 45 basis points (100 basis points make a percentage point) to 10.7%. Operating performance improved on account of staff-cost control and marginally higher gross margins. Net profit increased 21% to Rs 43.82 crore, helped by other income.

Shoppers Stop posted a net profit of Rs 8.67 crore against a net loss of Rs 18.26 crore last year. Profitability was helped by strong operating performance and a decline in depreciation and interest costs. Operating margins stood at 6.63% compared with negative margins last year. Operating performance was helped by much lower growth of 1.7% in total expenditure. Cost-cutting measures including closure of loss-making formats in the last few months resulted in a drop in operating expenses. Revenues increased 9%, driven by a 2.3% growth in same-store sales in departmental stores and 1.8% growth in all formats. Also, the number of customers entering the stores increased 5.3%.

Provogue's revenues increased 9%, primarily led by discount sales, even as same-store sales got back on the growth track. Provogue added three stores in the quarter.

Operating performance was good and margins expanded by 191 basis points to 9.78% last year. Other expenditure declined 6.8% as lease rentals of some properties were revised downwards, which boosted operating performance. Net profit increased 12%.

Trent's net profit increased to Rs 5.26 crore from Rs 3.53 crore last year. Revenues increased 10.2%, driven by more than doubling of other operating income. Total expenditure grew at a relatively slower pace of 6%, as advertising and sales promotion costs increased by just 1.8% and total raw material costs grew 4.6%.

Operating margins stood at 3.78% from almost nil last year.


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