Nykaa Shines Bright in Q4 FY25: Beauty Vertical Surges Ahead of Industry Trends

Nykaa's parent entity, FSN E-Commerce Ventures Ltd., has reported strong growth for Q4 FY25, continuing its steady run for the whole financial year. The company had reported low to mid-twenty percent year-on-year estimated consolidated net revenue growth in Q4, as in line with its revenue growth estimate of mid-twenty percent for the whole year.

 

Key Highlights:

 

Beauty Vertical Performance: Nykaa's Beauty business outperformed the industry, with Gross Merchandise Value (GMV) growth projected in low thirties. This was because of sustained investments in customer acquisition, solid order volume growth, and retail store expansion. The company opened 19 new stores in Q4 and recorded respectable same-store sales growth.

 

House of Nykaa Strategy: Homegrown and acquired brands under the "House of Nykaa" portfolio contributed strong performance, a critical contribution to overall growth.

 

Fashion Vertical Update: Nykaa's Fashion vertical GMV growth was in the high teens, showing sequential improvement. Net revenue growth was, however, muted because of lower performance of owned brands and lower content-driven activity versus the third quarter, which was festivity-loaded.

 

Profitability: Nykaa reported a net profit of ₹26 crore in Q3 FY25, a 60% year-on-year growth.

 

The company is optimistic on its growth trajectory as it continues to build its retail footprint and expand its brand portfolio.

 

Source: Moneycontrol