Indian departmental store chain Shoppers Stop on Tuesday posted a more than 91% decline in fourth-quarter profit, as consumers dealing with high cost of living in urban centers cut back on discretionary spending.
The company, which is a retailer of brands such as Armani Exchange and Michael Kors, reported consolidated net profit of 19.9 million rupees ($233,738.17) for the three months ended March 31, down from 231.8 million rupees a year ago.
Although inflation has moderated in India, Shoppers Stop said in a press release it grappled with "continued softness in demand and a challenging macro environment."
Indians spending less on food, more on discretionary items
Its quarterly revenue from operations rose 1.7%, compared with a growth of more than 13% a year ago. Same store sales grew 3% during the fourth quarter.
The company has been sharpening its focus on higher growth segments such as premium and beauty products, which target the more affluent consumers.
Shoppers Stop's premium segment contributed 65% to the fourth-quarter revenue, up 7 percentage points from a year ago, with watches outperforming.
The segment comprised 64% of the revenue in the third quarter.
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