News

Published: July 6, 2024
Updated: July 6, 2024

Nykaa Projects 22-23% Revenue Growth in April-June Quarter

Strong Growth in Beauty Segment

FSN E-Commerce Ventures, the parent company of Nykaa, anticipates a consolidated revenue growth of approximately 22-23% year-on-year for the first quarter of FY25. This growth momentum is mirrored in the beauty vertical, despite challenges in the physical retail segment due to elections and heatwaves in North India. The Gross Merchandise Value (GMV) growth for the consolidated entity is expected to be in the mid-20s year-on-year.

Segmental Reporting Initiation

Starting this quarter, FSN E-Commerce Ventures will commence vertical-wise segmental reporting. This new approach will provide clearer insights into the performance of different business segments within the company.

Fashion Segment Faces Challenges

The overall fashion industry in India continues to struggle with a muted demand environment. This situation was exacerbated in the April-June quarter by a seasonally weak period with fewer weddings and festivities. Despite these challenges, Nykaa’s fashion vertical is projected to show a healthy revenue growth of around 20% year-on-year, although GMV growth is expected to be lower, in the mid-teens year-on-year.

Beauty and Personal Care (BPC) Growth Trajectory

Nykaa's beauty segment includes the online beauty platform, beauty-owned brands, physical stores, the eB2B distribution business 'Superstore by Nykaa', and the Nykaa Man BPC business. The GMV growth in this segment is projected to be in the high twenties year-on-year, aligning with the long-term growth trajectory of the Beauty and Personal Care (BPC) industry.

Fashion Segment Composition

The fashion segment of Nykaa consists of the Nykaa Fashion platform, fashion-owned brands, and additional entities such as Little Black Book (LBB) – a content platform, and the Nykaa Man lifestyle business.

Nykaa's projection of a 22-23% revenue growth for the April-June quarter highlights the company's resilience and adaptability in the face of market challenges. While the beauty segment remains robust, the fashion industry’s subdued demand poses challenges that Nykaa is navigating with strategic initiatives and segmental reporting.