FSN E-Commerce Ventures (NYKAA brand owner) share price could remain in focus as the company has reported strong earnings. Nykaa stock has touched 52-week high and low of Rs 229.8 and 136.5 respectively. During Monday's trading session, the stock closed 1 percent higher at Rs 194 after touching intraday high of Rs 195.07. The stock could see strong performance in today's trading session.

Nykaa, operated by FSN E-Commerce Ventures, delivered solid financial results for Q2 FY2025, showcasing notable growth across its beauty and fashion segments. The beauty division led the way with mid-twenties growth in both net revenue and net sales value (NSV), driven by strong omnichannel performance and a successful eB2B distribution strategy. Nykaa’s fashion segment also posted growth, though at a more moderate pace. Despite some subdued demand in the first half of the year, the company anticipates a revival in consumption driven by the upcoming festive and wedding seasons. The firm’s owned brands, including Dot & Key, continued to thrive, reinforcing its market position.

Strong Overall Performance in Q2 FY2025

Nykaa reported impressive consolidated net revenue growth in the mid-twenties on a year-on-year basis for Q2 FY2025. This growth reflects the company’s resilience and adaptability, particularly in the competitive beauty and fashion sectors. Nykaa’s strategic investments in omnichannel retail and eB2B distribution have paid off, driving strong results ahead of the festive season.

Beauty Segment Leads with Robust Expansion

Mid-twenties growth in both net revenue and net sales value (NSV) for beauty vertical Nykaa’s beauty segment posted mid-twenties growth in both net revenue and NSV, a testament to the company’s solid performance in this highly competitive industry. Additionally, the growth in gross merchandise value (GMV) was even higher, underpinned by a comprehensive omnichannel retail strategy that seamlessly integrates online and offline sales channels.
Success in eB2B distribution and owned brands
The company’s eB2B distribution channel, combined with the success of owned brands, bolstered its beauty segment's performance. Notably, Dot & Key, a skincare brand in which Nykaa holds a 90% stake, continues to exhibit high growth, contributing significantly to the overall success of the beauty vertical.

Fashion Segment Registers Moderate Growth

NSV growth in the early teens Nykaa’s fashion segment, while not as fast-growing as the beauty division, still delivered early-teens growth in NSV for the quarter. Despite facing subdued demand in the first half of the financial year, the fashion vertical is expected to see an uptick in consumption during the festive and wedding seasons.
Revenue growth in the early twenties
Overall, the fashion vertical’s revenue increased in the early twenties, supported by strong performance from Nykaa’s content platform, LBB. The acquisition of LBB has further strengthened the company’s fashion business, helping it reach a wider audience through compelling content and curated offerings.

Festive Season Expected to Drive Further Growth

Revival in demand anticipated in the second half of the year While the first half of FY2025 experienced softer demand, particularly in the fashion industry, Nykaa remains optimistic about the second half of the year. The company expects a resurgence in consumer spending as the festive and wedding seasons approach, providing a critical boost to both its beauty and fashion segments.

India’s Beauty Market Shows Resilience

Higher per capita income driving demand Nykaa also noted that India’s beauty market continues to experience strong demand, fueled by rising per capita income and increasing consumption rates. The company remains well-positioned to capitalize on these favorable market dynamics, with its diverse portfolio of owned brands and effective omnichannel strategy allowing it to maintain a competitive edge in the industry.