FSN E-commerce Ventures, the parent company of Nykaa, reported robust growth in its beauty vertical for the December quarter, with net revenue growth surpassing mid-20% levels. The company also expects gross merchandise value (GMV) for the segment to grow in the low 30% range, reflecting strong momentum across its e-commerce platform, retail stores, owned brands, and eB2B distribution.
In its exchange filing, Nykaa noted that growth in its beauty vertical has accelerated compared to previous quarters. Brokerage firm JM Financial echoed this sentiment in a research note, estimating core beauty and personal care (BPC) GMV growth between 26.5% and 28.5% year-on-year.
“This quells concerns about quick commerce (QC) expansion impacting Nykaa. On the contrary, growth in this segment is accelerating,” the report stated, emphasising Nykaa’s strong discovery-led shopping experience, bolstered by extensive product content and reviews.
Continue Exploring: K-Beauty Reigns, Luxury Grows, And Men Join In: Key Insights From Nykaa’s Report – Snackfax
Improving Delivery Timelines
Nykaa has also been reducing delivery times on its platform without significant investment that might impact profitability. During the second quarter earnings call, Nykaa Beauty CEO Anchit Nayar highlighted efforts to expedite deliveries while maintaining healthy revenue margins.
Fashion Vertical Shows Modest Growth
While Nykaa’s beauty segment thrived, its fashion vertical showed more subdued performance. The company expects net revenue growth of about 20% in this segment, with net sales value growth anticipated in the low to mid-teens. This follows the recent resignation of Nihir Parikh, CEO of the fashion vertical, due to personal reasons.
Continue Exploring: Nihir Parikh Steps Down As CEO Of Nykaa Fashion! – Snackfax
Stock Rises
Nykaa’s shares climbed 4% on the BSE on Monday, closing at Rs 174.62, reflecting investor confidence in the company’s growth trajectory.
In Q2 FY24, Nykaa reported a 24% year-on-year rise in operating revenue, totaling Rs 1,875 crore, with consolidated net profit surging 66% to Rs 13 crore.
