While providing a business update for the fourth quarter of fiscal year 2022–23 on April 5, fashion retailer Nykaa said that the company’s sales growth rate will be comparable to the first nine months of FY23.
In the first quarter of the fiscal year, Nykaa’s revenue increased by 41% year-over-year to Rs 1,148.4 crore. In the second quarter, it increased by 39 percent year-over-year to Rs 1,230 crore and by 33 percent year-over-year to Rs 1,462 crore in the third quarter.
Nykaa notified the stock markets: “We estimate our percentage revenue growth rates to be comparable to those witnessed in the first nine months of fiscal year 23.”
In the fourth quarter of fiscal year 23, amid a background of sluggish industry growth, Tier 1 customers displayed sustained spending, resulting in “stronger revenue growth on the Nykaa platforms,” according to a regulatory filing.
It was reported that the company’s beauty and personal care (BPC) categories had “continued robust demand,” helped in part by the ‘Pink Love’ promotion offered during the quarter.
“BPC business has seen stronger year-over-year growth rates in Q4 FY23 compared to Q3 FY23,” Nykaa stated, adding that the solid operational parameters for the BPC business, such as average order values and conversion rates, contributed to the revenue increase.
Nonetheless, Nykaa said that its fashion division has suffered “some damage” as a result of a customer retreat in discretionary spending.” According to the report, this contributed to a “modest rise” in new sale values during the January-March quarter.
The organisation predicted that the fashion industry’s percentage sales growth rates would be in the late teens.
“This is a result of our emphasis on business effectiveness and unit economics. Our average order value and conversion rates have gradually increased, “it added.
Nykaa is anticipated to release its Q4 financial results shortly. On the day the firm released its quarterly business update, its stock price increased on the stock exchange. The closing price on the BSE was Rs 136.55 per share, 7.8 percent higher than the previous day’s finish.