Indian beauty retailer Nykaa reported stellar sales during the festive season, due in large part to the country’s festive climate. Compared to the second quarter of 2021, the omnichannel retailer increased its net profits by 333 percent, while revenues increased by 39 percent.
The Mumbai-based company cited its store expansion strategy and investment in its fashion division, as key drivers of growth.
After the announcement, Nykaa shares rose about 4.5 percent to IDR 1,204, climbing back above the price of its initial public offering (IPO).
“Post Covid-19, our accelerated investments in new store rollouts as well as store upgradation has resulted in improved footfalls and higher same store sales,” stated Falguni Nayar, CEO of Nykaa.
“Our business has delivered sustainable, strong growth, while investing in capabilities for the future.
“Our online and offline presence in beauty has delivered strong growth with improving margins. There has been structural improvement in fulfilment costs as we move to regional warehouses.”