Demand For Beauty And Personal Care Is Improving, Says Nykaa CEO Falguni Nayar

FSN E-Commerce Ventures, the parent company of online retailer Nykaa, posted a net profit of 5 crore in the April-June quarter, while revenues increased 41 percent to 1,148 crore, supported by evidence of demand recovery across all verticals. Nykaa's net profit plummeted 34% sequentially after reporting a profit of 7.6 crore in the March quarter.

Nykaa Founder and CEO Falguni Nayar said that the company booked good sales in June quarter despite the challenging environment. “Our business continues to grow across the verticals, despite an adverse and challenging macroeconomic environment, demonstrating the strength of our business fundamentals and unique customer-first experiences. The beauty vertical, online and offline, is witnessing growth momentum, while building efficiencies across the value chain,” she added.

In the first quarter of FY23, its gross merchandise value climbed 47 percent year on year to 2,155.8 crore. Nykaa has expedited its offline development by launching eight real locations in places such as Pune, Coimbatore, Delhi, Ranchi, Ahmedabad, and Kolkata to allow customers to identify their brand. This brings the overall number of physical stores to 113 across 52 cities. The business intends to quadruple the number of stores to 300 across 100 locations.

Furthermore, the corporation is preparing for the next holiday season and restarting physical purchasing. "As a result of the substantial discipline we maintained in our retail store business during the COVID-affected times, we are now seeing the positive effect of scale on our unit economics, particularly with the resumption of offline purchasing behaviour." Consumer demand for beauty, personal care, and health is also showing early indications of recovery, and we are anticipating a successful holiday season this year," she added.