Shares of FSN E-Commerce Ventures Ltd (Nykaa) surged by 3 percent on October 6, following the company announced robust performance in the September quarter across all verticals, including Nykaa Fashion. This performance comes against the backdrop of subdued discretionary consumption in the industry, attributed to a delayed festive season.

As of 10:19 am, the stock was trading at Rs 148.85 on the National Stock Exchange, marking a 1.26 percent increase from its previous closing price.

Nykaa, in a BSE exchange filing, stated that the net sales value of their beauty and personal care business for the quarter is expected to grow by approximately 20 percent on a YoY basis. The festive season typically serves as a significant driver for lifestyle categories, but this year witnessed a delay, starting in October rather than September as in the previous year. This shift has had a base impact on the Q2 FY24 growth to some extent.

Further, Nykaa Fashion has experienced substantial momentum in Q2 FY24, in stark contrast to the overall apparel industry, which continued to face sluggish demand this quarter, particularly in smaller towns. However, the industry is expected to witness improved trends during the festive season. Within the quarter, Nykaa Fashion optimised its core category mix and achieved an improvement in order volumes.

Fashion NSV (net sales value) for the quarter is anticipated to grow by early 30s on a year on year (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 a YoY basis, both at levels similar to Q1 FY24. Overall, the H1 FY24 performance positions Nykaa well for the year, with the second half historically witnessing superior consumer demand.” added Nykaa.

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Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

Shares of FSN E-Commerce Ventures Ltd (Nykaa) surged by 3 percent on October 6, following the company announced robust performance in the September quarter across all verticals, including Nykaa Fashion. This performance comes against the backdrop of subdued discretionary consumption in the industry, attributed to a delayed festive season.

As of 10:19 am, the stock was trading at Rs 148.85 on the National Stock Exchange, marking a 1.26 percent increase from its previous closing price.

Nykaa, in a BSE exchange filing, stated that the net sales value of their beauty and personal care business for the quarter is expected to grow by approximately 20 percent on a YoY basis. The festive season typically serves as a significant driver for lifestyle categories, but this year witnessed a delay, starting in October rather than September as in the previous year. This shift has had a base impact on the Q2 FY24 growth to some extent.

Further, Nykaa Fashion has experienced substantial momentum in Q2 FY24, in stark contrast to the overall apparel industry, which continued to face sluggish demand this quarter, particularly in smaller towns. However, the industry is expected to witness improved trends during the festive season. Within the quarter, Nykaa Fashion optimised its core category mix and achieved an improvement in order volumes.

Fashion NSV (net sales value) for the quarter is anticipated to grow by early 30s on a year on year (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 a YoY basis, both at levels similar to Q1 FY24. Overall, the H1 FY24 performance positions Nykaa well for the year, with the second half historically witnessing superior consumer demand.” added Nykaa.

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Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.