Jan 20 (Reuters) - Indian department store chain Shoppers Stop posted a 69% drop in quarterly profit on Tuesday, as urban consumers cut back on discretionary spending amid slowing wage growth in major cities.
The retailer posted consolidated net profit of 161.2 million rupees ($1.77 million) for the third quarter ended December 31, compared to 522.3 million rupees a year ago, according to a regulatory filing.
Large retailers have been grappling with intensifying competition as well as moderating consumer spending.
Overall consumer demand remained soft with only intermittent spikes, leaving quarterly sales flat, while the post-consumption tax cut boost in spending proved short-lived, Shoppers Stop said in an earnings presentation.
The company, which retails major brands such as Estee Lauder and Shiseido, reported a 3% rise in revenue to 14.16 billion rupees as an ongoing boom in beauty products sales helped cushion some of the blow.
The retailer is now betting on benign inflation in the country to support demand recovery over time.
Shoppers Stop's rivals Arvind Fashions, Tata Group-owned Trent, and Aditya Birla Fashion and Retail are yet to report their earnings.
($1 = 90.9470 Indian rupees)
(Reporting by Komal Salecha in Bengaluru and Praveen Paramasivam in Chennai; Editing by Harikrishnan Nair)
