Nykaa Revenue to Rise 22-23% in Q1 FY25 | Beauty Growth Strong, Fashion Muted

New Delhi, Jul 7 (PTI) FSN E-Commerce Ventures, the parent company of Nykaa, on Sunday forecast a year-on-year consolidated revenue growth of around 22-23 per cent in the first quarter of 2024-25 (FY25) with a matching growth momentum for beauty vertical but flagged "muted" demand environment in the fashion industry.

In a BSE filing on its quarterly revenue update for the April-June quarter of FY25, the company said for the consolidated entity, the GMV (Gross Merchandise Value) growth for the quarter is seen to be in the mid-20s year-on-year.

FSN E-Commerce Ventures also informed that it is commencing vertical-wise segmental reporting, beginning this quarter.

"Nykaa - FSN E-Commerce Ventures Limited along with its subsidiaries, that is the consolidated entity expects its revenue growth to be around 22-23 per cent YoY in Q1 FY2025," the company said.

The Beauty vertical revenue growth for the quarter is expected to be around 22-23 per cent YoY, similar to the consolidated entity's revenue growth.

"GMV growth is expected to be higher, in the high twenties YoY, in line with long-term BPC (Beauty and Personal Care) industry growth-trajectory. This is despite relatively slower growth in our physical retail business which was impacted by elections as well as heatwaves across North India," it said.

The company, however, flagged the soft demand environment in the Indian fashion industry.

"The overall fashion industry in India continues to face challenges with a muted demand environment. The growth was further impacted in this seasonally weak quarter due to limited weddings and festivities," according to the company.

Within this context, it said, the Fashion vertical revenue is expected to deliver a healthy performance, with revenue growth of around twenty per cent YoY. GMV growth for the quarter is expected to be lower at mid-teens YoY.

The Beauty segment comprises online beauty platform Nykaa, beauty owned brands, and physical stores, additionally including eB2B distribution business 'Superstore by Nykaa', and the Nykaa Man BPC business.

The fashion segment consists of the Nykaa Fashion platform, and fashion-owned brands, additionally including LBB (Little Black Book) - the content platform and the Nykaa Man lifestyle business.