Nykaa sees signs of recovery after inflationary pressures

BENGALURU Indian cosmetics-to-fashion retailer Nykaa said on Friday it expects stronger demand for its products in the current quarter after a'subdued season' where inflationary pressures have hindered consumer spending.

The upcoming festival season, which runs until the end of the year, will boost consumer demand for beauty, personal care and wellness products, which Nykaa said was already showing signs of recovery.

According to the post earnings call after the last quarter of the last quarter, Nykaa CEO and Managing Director Falguni Nayar said the company's high-end shoppers were cautiously optimistic and hopeful that the season may be good, and that inflationary pressures have begun to build in the first quarter.

The gross merchandise value of GMV went up 47 per cent to 21.56 billion rupees in the quarter ended June. The GMV from its fashion business jumped 59 per cent, while the beauty and personal care business rose 39 per cent.

In November 2021, the company earned the country's first women- led unicorn a valuation of nearly $14 billion, as a result of a strong market debut.

The TGP-backed company, which dominates the domestic online beauty and personal care space with nearly 30 per cent market share, recently ventured into the men's innerwear and athleisure category with a new brand.

Nykaa-owned FSN E-Commerce Ventures Ltd posted a 33.2 per cent increase in the quarterly net profit at 45.5 million rupees $574,582.