FSN Ecommerce Ventures anticipates 22-23 per cent revenue boost, highlights beauty segment resilience amid muted fashion demand
In a recent BSE filing, FSN Ecommerce Ventures, the parent company of Nykaa, forecasted a consolidated revenue growth of approximately 22-23 per cent year-on-year for the first quarter of FY25. This reflects sustained momentum in India’s beauty retail sector, despite noting a ‘muted’ demand environment in the fashion industry.
The company projected a mid-20s percentage growth in GMV (Gross Merchandise Value) year-on-year for the consolidated entity. FSN E-Commerce Ventures also announced the commencement of vertical-wise segmental reporting starting this quarter.
“Nykaa – FSN E-Commerce Ventures Limited, along with its subsidiaries, expects its revenue growth to be around 22-23 per cent YoY in Q1 FY2025,” the company stated. Revenue growth for the beauty vertical is expected to align with the consolidated entity’s growth.
“GMV growth is expected to be higher, in the high twenties YoY, in line with the long-term BPC (Beauty and Personal Care) industry growth trajectory. This is despite relatively slower growth in our physical retail business, which was impacted by elections and heatwaves across North India,” the company reported.
However, FSN E-Commerce Ventures flagged a soft demand environment in the Indian fashion retail market. “The overall fashion industry in India continues to face challenges with a muted demand environment. The growth was further impacted in this seasonally weak quarter due to limited weddings and festivities,” the company noted.
Despite these challenges, the fashion vertical is expected to deliver solid performance, with revenue growth of around 20 per cent YoY. GMV growth for the quarter in the fashion segment is anticipated to be lower, at mid-teens YoY.
The beauty segment includes the online beauty platform Nykaa, beauty-owned brands, physical stores, the eB2B distribution business ‘Superstore by Nykaa’ and the Nykaa Man BPC business. The Fashion segment comprises the Nykaa Fashion platform, fashion-owned brands, the content platform LBB (Little Black Book) and the Nykaa Man lifestyle business.
