FSN E-Commerce Ventures Ltd., parent of cosmetics-to-fashion retailer Nykaa, expects its consolidated revenue to grow in the early twenties year-on-year in the September quarter—at levels similar to the previous quarter.
Nykaa has witnessed a "strong" quarter across both beauty and fashion verticals, in contrast to the industry estimates that indicated slightly subdued discretionary consumption on account of a delayed festive season, according to its quarterly business update filed with the bourses.
"The beauty vertical continues to expand through the e-commerce business, physical store expansion, and growth of our owned brands," the retailer said. The growth was supported by the success of its flagship event, ‘Hot Pink Sale' in July. For the July–September period, the net sales value of the beauty and personal care business is expected to grow around 20% over the previous year.
"The festive season is a big driver for lifestyle categories and has witnessed a delay this year, moving into October versus commencing in September last year," the company said on Friday, adding that the second quarter results will reflect the impact of a high base because of this shift.
Nykaa Fashion, too, has witnessed strong momentum in Q2. "This stands in contrast to the overall apparel industry, which continued to see sluggish demand this quarter, especially in small towns," the company said.
However, the industry is expected to see improving trends in the festive season. Within the quarter, Nykaa Fashion has optimised the core category mix, along with improvements in order volumes, it said. It expects the net sales value in the fashion segment to grow in the early thirties over last year.
On a consolidated basis, Nykaa estimates its net sales value to grow in the mid-twenties.
"Overall, the first half of FY24 performance sets up Nykaa well for the year, with the second half historically witnessing superior consumer demand," the company said.
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