FSN E-commerce posts mid-twenties revenue surge in Q2

8 Oct 2024 , 02:32 PM

Shares of Nykaa’s parent company, FSN E-commerce, fell 2.5% on October 8, despite the fact that the company reported solid business updates for the July-September quarter, with revenue growth in the mid-twenties year over year.

At around 12.58 PM, Nykaa (FSN E-commerce) was trading 0.38% lower at ₹193.31, against the previous close of ₹194.05 on NSE. The counter touched an intraday high and low of ₹196.79, and ₹188.60, respectively.

Nykaa’s beauty division likewise experienced strong mid-twenties growth in both net revenue and net sales value (NSV), with gross merchandise value (GMV) increasing even faster. This expansion was fuelled by strong performance in omnichannel retail, owned brands, and e-B2B distribution ahead of the holiday season. Dot & Key, a skincare company in which Nykaa owns a 90% share, has continued its spectacular development trajectory.

The fashion vertical experienced NSV growth in the early teens, while total category sales increased in the early twenties. LBB, Nykaa’s content platform, also had a big role in this expansion, increasing the fashion vertical’s performance, according to a stock exchange filing.

Meanwhile, the beauty and fashion company expects a rebound in growth momentum in the following quarters. The fashion sector is predicted to increase at a similar rate throughout time. However, consumption has seen weak demand in the first half of this fiscal year, but the sector forecasts a steady recovery in the second half, led by the festive and wedding seasons, it stated in an exchange filing.

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