Nykaa expects consolidated revenue to grow 22-23% in the April-June quarter
The fashion segment consists of the Nykaa Fashion platform and fashion brands, including LBB (Little Black Book), the content platform, and the lifestyle company Nykaa Man.
FSN E-Commerce Ventures, the parent company of Nykaa, on Sunday forecast consolidated revenue growth of around 22-23 per cent year-on-year in the first quarter of 2024-25 (FY25), with corresponding growth momentum for the beauty space. However, the company warned of a “muted” demand environment in the fashion industry.
In a BSE filing on its quarterly revenue update for April-June quarter of FY2025, the company said that for the consolidated entity, gross merchandise value (GMV) growth for the quarter is expected to be in the mid-20s on a YoY basis.
FSN E-Commerce Ventures also said it will begin vertical segment reporting this quarter.
“Nykaa – FSN E-Commerce Ventures Limited and its subsidiaries, i.e. the consolidated entity, expects revenue growth to be around 22-23 percent YoY in the first quarter of FY 2025,” the company said.
The Beauty vertical division’s revenue growth is expected to be around 22-23 percent year-on-year in the quarter, similar to the consolidated entity’s revenue growth.
“GMV growth is expected to be higher, in the high 20s y-o-y, in line with the long-term BPC (Beauty and Personal Care) industry growth trajectory. This is despite relatively slower growth in our physical retail business, which was impacted by elections and heat waves in North India,” it said.
However, the company warned of weak demand in the Indian fashion industry.
“The overall fashion industry in India continues to face challenges with a muted demand environment. Growth was further impacted in this seasonally weak quarter due to limited weddings and festivities,” the company said.
In this context, it said, the Fashion vertical revenue is expected to deliver a healthy performance, with revenue growth of around 20 percent year-on-year. GMV growth for the quarter is expected to be lower, at mid-teens year-on-year.
The Beauty segment includes the online beauty platform Nykaa, its own beauty brands and physical stores, as well as the eB2B distribution business ‘Superstore by Nykaa’ and the Nykaa Man BPC businesses.
The fashion segment consists of the Nykaa Fashion platform and fashion brands, including LBB (Little Black Book), the content platform, and the lifestyle company Nykaa Man.
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First print: 07 Jul 2024 | 21:05 IST