In Friday’s trading, shares of FSN E-Commerce Ventures Ltd (Nykaa) increased by three percent. This came after the Mumbai-based e-commerce company said it saw a strong September quarter across all verticals, including Nykaa Fashion. This came against the backdrop of subdued discretionary consumption in the industry due to a delayed festive season. Nykaa Fashion was one of the verticals that saw strong growth.
In a document that was submitted to the BSE, Nykaa said that consumption in the BPC category (beauty and personal care) remained healthy. The beauty vertical continues its progress thanks to the growth of the Internet business, the extension of the physical store footprint, and the expansion of the company’s brands. According to Nykaa, the rise was made possible by the success of our flagship event, which was called the “Hot Pink Sale,” which took place in July.
“On a year-over-year basis, we anticipate that our BPC business’s NSV for the quarter will expand by around twenty percent. The holiday season, which is a significant driver for lifestyle categories, has been pushed back into October this year as opposed to beginning in September as it did the year before. Last year, the holiday season began in September. This move has a base effect on the growth for the second quarter of the fiscal year 24,” it stated.
As a direct result of the occurrence, the share price increased by 3.13 percent, reaching a new high of Rs 151.55. Later on, it was selling at Rs 149, which was an increase of 1.4%. “Nykaa Fashion has seen great progress in the second quarter of fiscal year 24. This is in stark contrast to the garment sector as a whole, which continued to see weak demand throughout this quarter, particularly in the smaller towns. Despite this, it is anticipated that the sector will witness increasing trends throughout the holiday season. During the quarter, Nykaa Fashion was able to achieve both an increase in order volume as well as an optimization of the core category mix.
On a year-over-year basis, it is anticipated that the quarterly fashion NSV (net sales value) will show growth in the early 30s.
“At a consolidated level, we anticipate that our NSV will rise in the mid-twenties and our revenue will grow in the early-twenties on a YoY basis for the second quarter of fiscal year 2024, both at levels that are comparable to Q1 FY24. In general, the success of the first half of the fiscal year 24 positions Nykaa well for the remainder of the year, with the second half traditionally showing higher customer demand, the company stated.
