Nykaa’s shares will remain in focus as fashion CEO Nihir Parikh steps down
Nykaa’s fashion division will attract investors’ attention on Friday after Nihir Parikh, CEO of Nykaa Fashion, resigned citing his commitment. His resignation, effective December 5, 2024, was disclosed in a regulatory filing on Thursday.
Parikh, who joined Nykaa in 2015, played a major role in shaping her fashion sense. A chemical engineer from the University of Mumbai and an MBA from INSEAD, Parikh brought a wealth of experience from his previous work at Genentech Inc. and GE Healthcare.
Mixed performance in the fashion sector
Nykaa’s fashion business has faced tough conditions in recent quarters. In the second quarter of FY24, the segment recorded an estimated 10 percent year-on-year growth in gross merchandise value (GMV). The company attributed the strong performance to the big festivals that are organized later in the year, which slows down the general increase in demand for fashion products.
Parikh had earlier highlighted the underperformance of Indian and ethnic wear, a strong segment of the company, due to lower event and festival-related demand. Despite these challenges, Nykaa’s overall Q2 results showed resilience, with operating income growing 24 percent year-on-year to Rs 1,875 crore and consolidated profit up 66 percent to Rs 13 crore.
Prioritized pivots
Parikh’s departure coincides with Nykaa stepping up its fast-paced commercial efforts. The beauty and lifestyle retailer specializes in fast-moving stock-keeping units (SKUs), promising delivery within thirty minutes to three hours for essentials such as beauty products. This change reflects Nykaa’s strategy to strengthen its market position amid growing competition in the e-commerce space.
Investors will be closely monitoring Nykaa’s stock performance, especially given the leadership changes and evolving market strategies. While challenges remain in fashion, the company’s broad growth and rapid commercial pivot could play an important role in maintaining investor confidence.
