Nykaa shares climb 3% post Q2 update. Here's why
Nykaa said the BPC business NSV for the quarter is expected to grow around twenty per cent on YoY basis. The festive season is a big driver for lifestyle categories, it noted.
- Oct 6, 2023,
- Updated Oct 6, 2023 9:47 AM IST
Shares of FSN E-Commerce Ventures Ltd (Nykaa) climbed 3 per cent in Friday's trade after the Mumbai-headquartered e-commerce company said it saw a strong September quarter across all verticals, including Nykaa Fashion, against a backdrop of subdued discretionary consumption in the industry due to delayed festive season.
In a filing to BSE, Nykaa said Consumption in the Beauty and Personal Care (BPC) category remained healthy. The beauty vertical continued to expand through the ecommerce business, physical store expansion and growth in owned brands. The growth, Nykaa said, was supported by the success of our flagship event ‘Hot Pink Sale’ in July.
"Our BPC business NSV for the quarter is expected to grow around twenty per cent on YoY basis. 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. This shift has a base impact on the Q2 FY24 growth to some extent," it said.
Following the development, the stock rose 3.13 per cent to hit a high of Rs 151.55. It was later trading at Rs 149, up 1.4 per cent.
"Nykaa Fashion has witnessed strong momentum in Q2FY24. This stands in contrast to the overall apparel industry which continued to see sluggish demand this quarter, especially in the small towns. However, the industry is expected to see improving trends in the festive season. Within the quarter, Nykaa Fashion has optimized the core category mix along with improvement in order volumes," it said.
Fashion NSV (net sales value) for the quarter is seen growing in early 30s on YoY basis.
"For Q2 FY24, at a consolidated level, we expect our NSV to grow in the mid-twenties and revenue to grow in the early twenties on YoY basis, both at levels similar to Q1 FY24. Overall, the H1 FY24 performance sets up Nykaa well for the year with second half historically witnessing superior consumer demand," Nykaa said.
Shares of FSN E-Commerce Ventures Ltd (Nykaa) climbed 3 per cent in Friday's trade after the Mumbai-headquartered e-commerce company said it saw a strong September quarter across all verticals, including Nykaa Fashion, against a backdrop of subdued discretionary consumption in the industry due to delayed festive season.
In a filing to BSE, Nykaa said Consumption in the Beauty and Personal Care (BPC) category remained healthy. The beauty vertical continued to expand through the ecommerce business, physical store expansion and growth in owned brands. The growth, Nykaa said, was supported by the success of our flagship event ‘Hot Pink Sale’ in July.
"Our BPC business NSV for the quarter is expected to grow around twenty per cent on YoY basis. 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. This shift has a base impact on the Q2 FY24 growth to some extent," it said.
Following the development, the stock rose 3.13 per cent to hit a high of Rs 151.55. It was later trading at Rs 149, up 1.4 per cent.
"Nykaa Fashion has witnessed strong momentum in Q2FY24. This stands in contrast to the overall apparel industry which continued to see sluggish demand this quarter, especially in the small towns. However, the industry is expected to see improving trends in the festive season. Within the quarter, Nykaa Fashion has optimized the core category mix along with improvement in order volumes," it said.
Fashion NSV (net sales value) for the quarter is seen growing in early 30s on YoY basis.
"For Q2 FY24, at a consolidated level, we expect our NSV to grow in the mid-twenties and revenue to grow in the early twenties on YoY basis, both at levels similar to Q1 FY24. Overall, the H1 FY24 performance sets up Nykaa well for the year with second half historically witnessing superior consumer demand," Nykaa said.