Shares of FSN E-Commerce Ventures Ltd, operating under the Nykaa brand, fell 1.53% to trade at ₹164.98 today, reflecting investor concerns after the resignation of Nykaa Fashion CEO Nihir Parikh. The resignation, effective December 5, 2024, was cited as being due to personal commitments, according to a regulatory filing.
Key Developments:
- Leadership Transition: Nihir Parikh, who led Nykaa’s fashion vertical, stepped down, raising questions about the company’s strategic focus on the segment.
- Fashion Vertical’s Struggles: Nykaa Fashion contributes less than 10% of the company’s revenue and is currently a loss-making division. This resignation comes amidst ongoing efforts to boost the segment’s profitability.
- Core Strength in Beauty: The beauty vertical continues to dominate Nykaa’s revenue streams, stabilizing investor sentiment despite challenges in other divisions.
Financial Performance:
- September 2024 Quarter:
- Consolidated Net Profit: ₹12.97 crore
- Revenue: ₹1,874 crore
Stock Performance:
Nykaa’s stock performance reflects long-term challenges:
- 1 Month: -9.48%
- 1 Year: -4.90%
- All-Time: -50.98%
Investors remain cautious as the company navigates leadership changes and works to strengthen its non-beauty divisions.
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