Nykaa, India’s leading beauty and fashion e-commerce platform, has registered a 27% year-on-year decline in its consolidated profit for the first quarter ended March 2023. The company’s profit stood at ₹29.1 crore, down from ₹39.4 crore in the same quarter last year.
The decline in profit was due to a slowdown in the fashion business, which accounts for about 40% of Nykaa’s revenue. The company’s fashion business grew by just 10% in the first quarter, compared to a growth of 30% in the same quarter last year.
The slowdown in the fashion business was due to a number of factors, including the ongoing economic slowdown, the rising cost of living, and the preference for casual wear among consumers. Nykaa is also facing increasing competition from other e-commerce platforms, such as Amazon and Flipkart, which are expanding their fashion offerings.
Despite the slowdown in the fashion business, Nykaa’s overall revenue grew by 22% in the first quarter, to ₹1,045 crore. The company’s beauty business continued to grow strongly, with revenue increasing by 30% to ₹653 crore.
Nykaa is confident of returning to profitability in the coming quarters. The company is taking a number of steps to improve its fashion business, including launching new brands, expanding its offline presence, and improving its marketing efforts.
Nykaa is also looking to expand into new categories, such as home and personal care, to diversify its revenue streams. The company is targeting a revenue of ₹5,000 crore by 2025.