Nykaa shares increase significantly after entering a new category

With GLOOT, Nykaa claimed to have entered the men’s athleisure and underwear market.

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In the early trades on Thursday, Nykaa shares increased more than 4% to Rs. 1,455 a share on the BSE after the firm announced that it has expanded into the men’s athleisure and innerwear categories with GLOOT.

By fusing comfort and technology in a way that is considerate of the environment, Nykaa Fashion hopes to reinvent an area that is frequently overlooked when it comes to men’s needs with this new brand. According to the exchange filing, athleisure items start at $899 and the underwear range starts at Rs 499.

“With Gloot, we have infused technology into innerwear and casual wear which results in the ultimate comfort for men. Gloot is a highly intelligent tech creation that will solve all the usual concerns consumers have with underwear. All in all, we are proud to present a premium brand where comfort and technology come together ensuring that men are able to make a seamless transition from home to work to the gym,” said Preeti Gupta, Chief Business Officer, Nykaa Fashion.

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Since listing in November of last year, the parent company of Nykaa, FSN E-Commerce Ventures Ltd., has seen a nearly 37 percent decline in share price. This decline is a result of the general market turmoil that has put additional pressure on technology company stock prices as interest rates are expected to rise globally. However, since its IPO issue price of Rs 1,125 per share, Nykaa shares have increased by nearly 28 percent.

For the fourth quarter that ended in March 2022, SN E-Commerce recorded a fall in its consolidated profit of around 57 percent to ₹7.57 crore, primarily due to new investments. The business reported a profit of ₹17.9 crore at the same time last year. From ₹740.5 crore in the same quarter last year, Nykaa’s operational revenue climbed by 31% to ₹973 crore during the reported quarter.

The beauty and personal care vertical’s gross merchandise value (GMV) increased from ₹964.5 crore to ₹1,248.5 crore in the March 2022 quarter, a 29 percent increase. The fashion sector grew by 84 percent during the quarter, from ₹262 crore to ₹482.7 crore.

The multi-brand fashion section of Nykaa’s website, Nykaa Fashion, features SKUs in the Women, Men, Kids, Luxe, and Home categories.