Nykaa forecasts revenue growth of 22-23% and GMV growth of around 25% in Q1

FSN E-Commerce Ventures Ltd, owner of fashion and beauty platform Nykaa, on Sunday (July 7) forecast a solid revenue growth of around 22-23% year-on-year in the first quarter of fiscal 2025. The consolidated entity also expects its gross merchandise value (GMV) to grow in the mid-20s year-on-year.

Nykaa will introduce vertical segment reporting from this quarter. The Beauty segment will include Nykaa’s online beauty platform, its own beauty brands, brick-and-mortar stores, its eB2B distribution business ‘Superstore by Nykaa’ and Nykaa Man Beauty and Personal Care (BPC) business.

The fashion segment will include Nykaa Fashion platform, its fashion brands, content platform LBB and lifestyle company Nykaa Man.

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Beauty revenue growth is expected to be in line with the overall company growth of around 22-23% YoY. GMV growth for the segment is expected to be in the high 20s YoY, reflecting the long-term growth trajectory of the BPC industry.

However, these results come despite slower growth in Nykaa’s retail sales, which was impacted by the elections and heatwaves in northern India.

“The Beauty vertical is expected to grow around 22-23% YoY this quarter, in line with the consolidated entity’s revenue growth. GMV growth is expected to be higher, in the high 20s YoY, in line with the long-term growth trajectory of the BPC (Beauty & Personal Care) industry,” Nykaa said.

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Nykaa’s fashion vertical is expected to see healthy revenue growth of around 20% year-on-year. GMV growth for the segment is expected to be more modest, in the mid-teens year-on-year.

“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,” Nykaa added.

Shares of FSN E-Commerce Ventures Ltd ended at ₹177.25, up ₹6.15, or 3.59 per cent, on the BSE on Friday (July 5).

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