Nykaa expects 27–29% revenue growth as fashion expands faster
Nykaa expects consolidated net revenue to grow 27–29% annually in the September quarter, with fashion expanding faster than beauty. The Indian retailer added 14 stores, bringing its total to 338, and reported its strongest same-store sales growth in six quarters. More festive-season activity falls in October–December this year. The update is provisional, ahead of reviewed quarterly financial results.
Economics & Markets··Night
Revenue growth is expected in the upper twenties
FSN E-Commerce Ventures, the Indian company operating beauty and fashion retailer Nykaa, expects consolidated net revenue to grow 27–29% from a year earlier in the quarter ended September. The company attributed its expansion to a larger fashion business and continuing growth in beauty. Its preliminary operating update precedes quarterly financial results, which will undergo limited review by statutory auditors; it does not constitute formal financial results or earnings guidance.[1], [2]
Nykaa projected consolidated gross merchandise value growth of 27–29%, while net sales value is expected to rise 31–33%. Gross merchandise value describes the total value of merchandise transactions; the company presents net sales value and net revenue as separate measures. The stated growth ranges compare the September quarter with the corresponding period a year earlier.[1]
Fashion expands faster than the beauty business
In fashion, the company expects net sales value to increase 47–49% and net revenue to grow 41–43%. New customers contributed to the division’s expansion, and more than 250 brands were added during the quarter. Nykaa described the early response to its Nike partnership as positive, with exclusive product launches supporting that collaboration and widening its fashion offering.[1]
Beauty net sales value and net revenue are each expected to grow 27–29%. Nykaa said new customer acquisition and repeat purchases by existing shoppers supported both physical and online channels. Its House of Nykaa brands grew faster than the beauty division overall, according to the company, with established and emerging brands contributing to that performance.[1], [2]
Store expansion meets a later festive-shopping calendar
Nykaa added a net 14 stores, bringing its network to 338 at September 30. Sales growth at comparable stores reached 21–23%, its strongest performance in six quarters. Existing stores therefore grew their sales alongside the separate expansion in the store network. The company said a larger portion of this year’s festive season falls in the October–December quarter, so some festival-related growth will appear then rather than in the September period. Management retained confidence in its underlying growth drivers and longer-term objectives.[1], [2]
