Nykaa slips nearly 8% as steep fall in profit disappoints investors
- Beauty and fashion ecommerce platform Nykaa reported a 58% slump in December quarter net profit led by steep increase in expenses.
- The company has more than doubled its spend on marketing and advertising in the last one year.
- The company’s financial performance may continue to be in the red as Falguni Nayar, CEO and MD says that ‘marketing continues to be an area of investment for Nykaa’.
AdvertisementShares of beauty and fashion ecommerce platform Nykaa slipped nearly 8% on Thursday morning trade after the company reported wider loss in the October to December quarter because of higher spending.
Nykaa reported a 59.5% slump in December quarter net profit, compared to a year ago, led by steep increase in marketing expenses.
The company has more than doubled its spend on marketing and advertising in the last one year.
Its financial performance may continue to be in the red as Falguni Nayar, chief executive officer (CEO) and managing director (MD) said that ‘marketing continues to be an area of investment for Nykaa to reacquire as well as recruit new consumers as a means to ensure stronger organic growth.’
Following the earnings results, which came out on Wednesday evening, shares of the company slipped 4% to ₹1,774 on February 10.
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