The fashion and cosmetics brand Nykaa, owned by FSN E-Commerce Ventures, announced a net profit of Rs 13.6 crore for the quarter that ended on 30th June 2024. This represents a 152 per cent increase from the Rs 5.4 crore earned during the same time the previous year.
Operating revenue for the Falguni Nayar-led company was recorded at Rs. 1,746 crore, up 23 percent from Rs. 1,422 crore at the same time last year. Sequentially speaking, the company reported Rs. 1,668 crore in revenue and Rs 9 crore in profit in Q4 FY ’24.
Like other companies that sold discretionary goods, Nykaa suffered as customers choose to spend their money on items that were more necessary for the hot summer months. Additionally, the general elections, which took place during half of the April–June quarter, and heat waves caused fewer customers to visit stores.
In addition to the decline in in-store traffic, Nykaa’s fashion division suffered this quarter due to fewer wedding dates, which has also affected shoe retailer Metro Brands and jeweller Titan. Numerous other retailers present fierce competition for Nykaa as well.
The fashion division of Nykaa, which sells apparel, accessories, and handbags under the Cider, Steve Madden, and Superdown brands, saw a 21 per cent growth in revenue, down from a 27 per cent gain in the previous quarter. The fashion business’ gross merchandise value (GMV), or the monetary value of all orders, growth slowed to 15 per cent from 27 per cent.
