Nykaa expects consolidated revenue to grow 22-23% in April-June quarter | Company News

Nykaa parent FSN E-Commerce Ventures on Sunday forecasted a year-on-year consolidated revenue growth of around 22-23 per cent in the first quarter of fiscal year 2024-25 (FY25), with a similar pace of growth in the beauty vertical, but pointed to a “subdued” demand environment in the fashion industry.

In its BSE quarterly revenue update for the April-June quarter of FY25, the company said that for the consolidated entity, GMV (gross trading value) growth for the quarter is expected to be around 25% year-on-year.

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FSN E-Commerce Ventures also announced that it will begin segmental reporting by vertical from this quarter.

“Nykaa – FSN E-Commerce Ventures Limited, together with its subsidiaries, i.e. the consolidated entity, expects its revenue to grow by around 22-23 per cent year-on-year in the first quarter of fiscal 2025,” the company said.

The cosmetics division is expected to grow revenue this quarter by around 22-23 percent year-over-year, similar to the consolidated entity’s revenue growth.

“GMV growth is expected to be higher, in the high 20s year-on-year, in line with the long-term growth trajectory of the BPC (Beauty and Personal Care) industry. This is despite relatively slower growth in our physical retail, which was impacted by the elections as well as the heatwaves in North India,” it said.

The company, however, highlighted weak demand in the Indian fashion industry.

“The overall fashion industry in India continues to face challenges due to subdued demand. Growth was further dampened in this seasonally weak quarter due to reduced weddings and festivities,” the company said.

In this context, the fashion division is expected to perform well, with revenue growth of around twenty percent year-on-year, as reported. GMV growth in the quarter is expected to be lower at around fifteen percent year-on-year.

The Beauty segment includes the online beauty platform Nykaa, its own beauty brands and brick-and-mortar stores, including the eB2B distribution company “Superstore by Nykaa” and Nykaa Man BPC.

The fashion segment consists of the Nykaa Fashion platform and fashion brands, including LBB (Little Black Book), a content platform, and the Nykaa Man lifestyle business.