FSN E-Commerce Ventures Ltd reported strong first-quarter fiscal 2027 results, with gross merchandise value growing 34% year-on-year and net revenue rising 29% year-on-year, while profit after tax jumped 226% year-on-year. The beauty vertical saw net sales value increase 29% year-on-year and expanded its EBITDA margin to 10.3%, while the fashion vertical grew net sales value 54% year-on-year and reached near break-even with a 0.1% EBITDA margin, a significant improvement from a negative 14.1% margin three years ago. The company's House of Nyka brands portfolio grew 43% year-on-year, and strategic initiatives such as the Nike direct-to-consumer partnership, which crossed 1.5 million app installs, and the expansion of Nyka Now to 13 cities with plans for over 25 by year-end are gaining traction. Operational efficiency improved, with return on capital employed rising to 26.8% from 12.7% a year ago and working capital days reduced to under 30. However, fulfillment expenses increased by 42 basis points due to infrastructure investments for Nyka Now, and the fashion vertical's thin profitability remains susceptible to competitive pressures.
Nike IncNike DTC partnership crossed 1.5 million app installs, indicating strong consumer adoption.
Q1 FY27 results show GMV up 34%, PAT up 226%, and improved margins and ROCE.