Nykaa expects strong growth in beauty segment, less in fashion in FY23

By

Isabelle Crossley

Published
Apr 5, 2023

Nykaa’s operating entity FSN E-commerce Ventures expects to report over 30% revenue growth for the just-passed 2023 financial year. Although its beauty and personal care segments have witnessed strong demand, growth in its fashion business has been more muted. 

“Consumer pullback in discretionary spending has had some impact on our fashion business, leading to subdued growth in NSV this quarter,” said the business in a regulatory filing about the fourth quarter of the 2023 financial year, the Economic Times reported. “For Q4 FY23, we expect our percentage revenue growth rates in the fashion business to come through in the late teens.”
 
Nykaa has seen economic challenges such as inflation cause shoppers to reduce their discretionary spending on fashion more than on beauty. For its core beauty business, Nykaa reported that strong organic customer demand was bolstered by its ‘Pink Love’ Valentine’s Day themed sale which it launched during the fourth quarter. 

“For FY23, we expect our percentage revenue growth rates to be in line with the ones seen in [the first] nine months [of] FY23, early thirties,” said FSN E-commerce Ventures in its filing. During the first nine months, or first three quarters, of the 2023 financial year, Nykaa had reported 37% year-on-year consolidated revenue growth.