Nykaa Q1 business update: Revenue expected to grow in mid-twenties; Beauty and Personal Care categories remains strong

livemint.com:

FSN E-Commerce Ventures, which runs retail stores under the name Nykaa, expects its consolidated revenue for the first quarter of fiscal 2024 to grow in the mid-twenties on a year-on-year (YoY) basis. In its business update for Q1FY24, the online clothing and cosmetics retailer said that the consumption in the Beauty and Personal Care (BPC) categories continued to remain strong, in line with longer term trajectory, despite overall discretionary spend slowdown.  “Nykaa was witness to this with the success of this quarter flagship sale event ‘Pink Summer Sale’ during the quarter. Our BPC business NSV (net sales value) for the quarter is expected to grow in the early twenties YoY.

This is supported by strong urban demand in the category," Nykaa said in a regulatory filing. Nykaa expects its fashion NSV for the June quarter to grow in low to mid-teens on YoY basis. “Apparel industry has been impacted due to a discretionary slowdown during the quarter, especially in small towns.

We expect discretionary spending to improve with the revival of seasonal demand. Despite the larger category trend, our Fashion business has witnessed relative resilience through gradual improvement in order volume with sustained AOV (average order value) YoY," the company added. Also Read: Titan shares hit a new 52-week high on strong Q1 business update; brokerages maintain bullish view In the quarter ended March 2023, FSN E-Commerce Ventures’s net profit plunged 71.8% to ₹2.4 crore in Q4FY23 from ₹9 crore in the corresponding quarter last fiscal.