5 hrs ago
Nykaa Shares Rise 6% After Strong Provisional Q2 Update
Nykaa shared an early update about how its business did in the second quarter.
Morgan Stanley said the update suggested revenue grew faster than it had expected.
Nykaa’s shares rose by as much as 6.11% on Monday.
The company opened 14 more Beauty stores, bringing its total to 338.
Sales at existing Beauty stores grew at their strongest pace in six quarters, Nykaa said.
Its Fashion business also grew, though Nykaa’s figures and Morgan Stanley’s estimate were different.
Nykaa said festive shopping growth shifted from the second quarter to the third this year.
The company had not yet reported its final quarterly results.
FSN E-Commerce Ventures shares rose as much as 6.11% on Monday, reaching Rs 342.95, from a previous close of Rs 323.20.
Morgan Stanley said Nykaa’s provisional update indicated consolidated revenue growth in the high twenties, ahead of its 26% estimate.
Nykaa added 14 net new Beauty stores, bringing its total to 338 as of September 30; like-for-like sales growth was in the early twenties.
Nykaa’s update put Fashion net sales value growth in the late forties and net revenue growth in the early forties; Morgan Stanley estimated Fashion net revenue growth in the low 50s.
Nykaa said festive-led growth shifted from Q2 to Q3 this year; its update was provisional, not final quarterly results.
- Who
- Nykaa, operated by FSN E-Commerce Ventures, and Morgan Stanley.
- What
- Nykaa issued a provisional Q2 business update, and its shares rose as much as 6.11%.
- Where
- Not specified in the article.
- When
- Monday; the update covers Q2, with store count reported as of September 30.
- Why
- Morgan Stanley said the provisional update indicated stronger growth than its estimates.
Key facts
- Share price high
- Rs 342.95 on Monday
- Change from previous close
- Up 6.11% from Rs 323.20
- Morgan Stanley revenue estimate
- Consolidated revenue growth in the high twenties, versus its 26% estimate
- Beauty stores
- 14 net new stores added; 338 total as of September 30
- Beauty like-for-like sales
- Growth in the early twenties; Nykaa called it the strongest in six quarters
- Fashion growth
- Nykaa’s provisional update showed Fashion net revenue growth in the early forties; Morgan Stanley estimated the low 50s
- Festive-season timing
- Nykaa said festive-led growth shifted from Q2 to Q3 this year
Sources
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