India's Nykaa posts 24% jump in Q1 revenue on boost from summer sale

Fsn E-Commerce Ventures

11/08/2023 13:01

BENGALURU, Aug 11 (Reuters) - India's Nykaa  FSNE.NS 
reported a higher first-quarter revenue on Friday, as the
cosmetics-to-fashion retailer's flagship sale event helped
sustain demand amid a slowdown in discretionary spending.
    The company's revenue grew 23.8% year-on-year to 14.22
billion rupees (about $172 million) in the April-June quarter. 
    Nykaa's flagship 'Pink Summer Sale' helped boost its beauty
and personal care (BPC) segment - the company's biggest. BPC
orders increased by 17% in the quarter. 
    The company's overall gross merchandise value (GMV) - the
monetary value of all its orders - rose 24% to 26.68 billion
rupees.
    The BPC business's GMV grew by the same margin, accounting
for nearly 70% of total GMV and helping outweigh a relatively
smaller 12% rise in the fashion segment's GMV, which, Nykaa said
was slower than the segment's long-term trajectory.
    Nykaa had warned last month that apparel sales were hit by
lower discretionary spending, especially in smaller cities and
towns.
    While India's retail inflation eased in April and May before
rising slightly in June, it has remained stubbornly high enough
for consumers to think twice about certain discretionary spends.
    In this environment, Nykaa has also had to contend with a
raft of executive resignations, including its marketing head, a
move that led to founder and CEO Falguni Nayar taking direct
oversight of the function.
    Nykaa's consolidated profit before tax rose 16.5%
year-on-year to 97.2 million rupees. Its profit attributable to
shareholders, however, fell 27.4% to 33 million rupees, while
profit for non-controlling interests surged 4.6-fold.
 
 ($1 = 82.8050 Indian rupees)

 (Reporting by Varun Vyas in Bengaluru; Editing by Savio
D'Souza)
 ((varunvyas.hebbalalu@thomsonreuters.com;))