Nykaa Q2 profit up

02 November 2022, Mumbai:

For the second quarter, Nykaa’s profit rose 344 per cent. The lifestyle retailer’s revenue from operations recorded a 39 per cent increase. During the quarter, the company continued to demonstrate strong GMV growth with improvement in gross margin, efficiency in fulfillment, and marketing cost leading to improvement in Ebitda margins.

Gross merchandise value rose 45 per cent while the gross margin improved to 45 per cent. Ebitda margin improved to five per cent. New season merchandise accounted for 24 per cent of Nykaa Fashion GMV; international brands are at 13 per cent of the western wear category GMV. Repeat buyers in fashion now contribute 66 per cent of GMV.

In the beauty and personal care segment, Nykaa’s GMV grew 39 per cent in the second quarter while margins also improved by 630 bps. The fashion business recorded a GMV growth of 43 per cent. In the remaining segments, the GMV grew 240 per cent. Post-Covid, Nykaa’s accelerated investments in new store rollouts as well as store upgradation has resulted in improved footfalls and higher same-store sales.

The company is now investing in growth engines of the future, particularly SuperStore by Nykaa. SuperStore by Nykaa has scaled to 73,000 transacting retailers across 650 cities with 182 brands listed.

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