The Indian beauty and fashion retailer announced a 333% increase in net profits
Nykaa, the Indian beauty retailer, has reported stellar sales driven by the country's festive season.
The omnichannel retailer announced a 333% increase in Q2 net profits compared to 2021, with revenues climbing 39%.
The Mumbai-based company highlighted its store expansion strategy, along with its investment into its fashion division, as key drivers for growth.
Nykaa shares rose about 4.5% to 1,204 rupees following the announcement, climbing back above its initial public offering (IPO) price of 1,125.
“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,” said 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."