Nykaa Projects Steady Revenue Growth Amid Muted Fashion Demand

FSN E-Commerce Ventures, the parent company of Nykaa, anticipates a year-on-year consolidated revenue growth of approximately 22-23% in Q1 FY2025. This growth trajectory is mirrored in the beauty vertical, although the fashion industry faces a subdued demand environment.

In a BSE filing, the company disclosed that GMV (Gross Merchandise Value) growth for the quarter is expected to be in the mid-20s year-on-year. FSN E-Commerce Ventures also announced the initiation of vertical-wise segmental reporting starting this quarter.

The Beauty vertical, which includes the online beauty platform Nykaa and various beauty-owned brands, is expected to see revenue growth around 22-23% YoY. Despite challenges such as heatwaves and elections impacting physical retail, GMV growth is projected to be in the high twenties YoY, aligning with the long-term BPC (Beauty and Personal Care) industry trends.

The fashion segment, however, is grappling with a muted demand environment. The quarter faced additional challenges with fewer weddings and festivals. Despite this, the Fashion vertical revenue is expected to grow around 20% YoY, though GMV growth is anticipated to be lower in the mid-teens YoY.

Overall, FSN E-Commerce Ventures remains optimistic about its consolidated growth outlook, despite sector-specific challenges.

(Disclaimer: With inputs from agencies.)