FSN E-Commerce Ventures also announced that it will begin vertical segment reporting starting this quarter.
 "Nikaa expects consolidated sales to rise 22-23% in the April-June quarter")
Press Trust of India New Delhi
Nykaa's parent company FSN E-Commerce Ventures on Sunday projected its consolidated revenue to grow about 22-23 per cent year-on-year in the first quarter of fiscal 2024-25 (FY25), and warned that while it sees similar growth momentum in the beauty segment, the demand environment in the fashion industry is “subdued”.
On a consolidated basis, quarterly GMV (gross merchandise value) growth is expected to be in the mid-20 per cent range over the same period last year, the company said in a BSE filing regarding its quarterly earnings update for April-June FY25.
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FSN E-Commerce Ventures also announced that it will begin reporting by vertical segments starting this quarter.
“Nykaa-FSN E-Commerce Ventures Limited and its consolidated subsidiaries expect their revenues to grow approximately 22-23% year-on-year for the first quarter of fiscal year 2025,” it said.
Beauty segment revenue growth for the quarter is expected to be 22-23% year over year, in line with consolidated entity revenue growth.
“GMV growth is expected to be high, in the high 20 percent year-on-year range, in line with the long-term BPC (beauty and personal care) industry growth trajectory. This is despite relatively modest growth in our brick-and-mortar retail business, impacted by elections and the heatwave across north India,” the company said.
However, the company pointed to a weak demand environment in the Indian fashion industry.
“The Indian fashion industry overall continues to face challenges amid weak demand. Growth was further impacted during a seasonally weak quarter due to limited weddings and festival celebrations,” the company said.
In this environment, the company said it expects its fashion division's revenue to perform healthily, up about 20% year over year. Quarterly GMV growth is now expected to slow to a mid-teens percentage point year over year.
The Beauty division comprises the online beauty platform Nykaa, its beauty owned brands and brick-and-mortar stores, as well as the eB2B distribution business “Superstore by Nykaa” and the Nykaa Man BPC business.
The fashion division comprises the Nykaa Fashion platform and fashion-owned brands, as well as content platform LBB (Little Black Book) and the Nykaa Man lifestyle business.
