Nykaa, the Indian beauty retailer, reported a significant increase in quarterly profit on Friday, with earnings more than tripling. This growth was driven by a consistent demand for makeup and skincare products, as well as new collaborations with global brands. The company, formerly known as FSN E-Commerce Ventures, recorded a profit of 344.4 million rupees ($3.9 million) for the quarter ending September 30, a substantial rise from 100.4 million rupees in the previous year.
These quarterly results indicate Nykaa's intensified focus on profitability through a renewed emphasis on its core beauty business. This strategy involved expanding strategic partnerships, such as the global launch of Katrina Kaif's Kay Beauty and Rihanna's Fenty Beauty. Additionally, Nykaa has extended its offline presence, establishing itself as a comprehensive beauty and lifestyle platform. With these enhancements, Nykaa has successfully positioned itself to serve India's robust $28-billion beauty and personal care market, which has remained resilient despite a broader slowdown in consumption trends.
Revenue generated from the beauty business surged by 25% to 21.32 billion rupees, driven by the integration of premium brands like Chanel, Aesura (a Korean skincare label), and Supergoop (a sunscreen manufacturer). The fashion vertical, which includes apparel and accessories from renowned labels like Victoria's Secret and Mia by Titan, saw a 21% increase in sales. This growth in both segments contributed to an overall revenue rise of 25% to 23.56 billion rupees.
During the quarter, Nykaa expanded its network by adding 19 new beauty stores, bringing the total count to 265. The company's gross margins also improved, expanding to 44.9% from 43.8% the previous year. This increase was supported by a heightened focus on premium offerings and a strategic approach to product selection and pricing.
Nykaa's recent financial performance underscores its successful business strategies and the positive reception of its expanded product offerings and partnerships. By leveraging its strong brand presence and broadening its reach, Nykaa continues to capture opportunities in the thriving beauty and personal care market in India. With a growing customer base and a robust portfolio of premium brands, Nykaa is well-positioned to sustain its momentum and drive further growth in the coming quarters.
