Online sales in food, fashion fared better than offline in Q1FY23: Report

Nykaa is anticipated to record an 11% YoY increase in its fashion revenue while Zomato is expected to have outperformed the majority of QSRs

Online commerce — particularly in the food and fashion segments — is expected to have fared better than offline during the quarter ended June 30, reported The Economic Times (ET) citing ICICI Securities.

ICICI Securities analysed signals from its April-June estimates for food and grocery delivery platform Zomato and omnichannel beauty and fashion retailer Nykaa to arrive at this conclusion.

“As noted in Q4FY23 (January-March 2023), we believe (the) consumption slowdown continued in Q1FY24 (April-June 2023) in most business-to-consumer (B2C) consumption categories,” ICICI Securities report said.

"This is because of persistent consumer inflation and how it affects disposable income as "return to office" policies are still being put into place across the country. However, online comme, rce seems to be doing better than offline," it added.
 

 

Zomato and Nykaa are yet to release their June-quarter earnings.

On July 7, Nykaa informed the stock exchanges that its fashion vertical's net sales value (NSV) for the June quarter was "expected to grow in the low- to mid-teens on a year-on-year (YoY) basis." NSV in the retail industry is the total gross sales of a company minus returns, allowances, and discounts.

While Nykaa is anticipated to report an 11 per cent YoY increase in its fashion revenue, ICICI Securities noted that the majority of apparel retailers had struggled to increase their revenue in the first quarter of FY24.

Zomato is also expected to have outperformed the majority of quick-service restaurants (QSRs) "on a like-to-like basis", stated the report.