Beauty and fashion retailer Nykaa is anticipating a growth in net revenue exceeding the mid-twenties percentage on a consolidated basis during the October to December quarter. FSN E-Commerce Ventures, the parent company of Nykaa, has projected that Gross Merchandise Value (GMV) growth for this period will be lower than the mid-twenties increase expected for net revenue, as stated in a recent exchange filing.
For the beauty and personal care segment, GMV growth is expected to surpass net revenue growth during the final quarter of the holiday season. GMV for the beauty sector is projected to be in the low thirties, whereas net revenue from this segment is expected to exceed the mid-twenties growth rate.
Nykaa sees beauty leveraging quick commerce more; plans to cut delivery times.
The eB2B distribution initiative, Superstore by Nykaa, has been growing swiftly, servicing approximately 260,000 transacting retailers across 1,100 cities. This segment now accounts for 8% of the beauty vertical’s GMV, up from 7% last year. The fashion vertical is projected to experience a net revenue growth of 20%, while net sales value is expected to trend within the low to mid-teens, driven by strong advancements in content, marketing, and service-related income.
“We believe online fashion demand continues to be subdued, but we remain optimistic about the long-term growth opportunity,” the filing indicated. This news follows the recent resignation of Nykaa Fashion CEO Nihir Parikh, who stepped down due to personal commitments. The company has yet to announce a successor for Parikh, whose last day was December 5, 2024. Meanwhile, Nykaa has appointed Abhijeet Dabas as the Executive Vice President and Business Head of fashion e-commerce to bolster its fashion vertical.
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