Shares of FSN E-Commerce Ventures – Nykaa's parent entity – slumped another 2.5% on Thursday to continue its 4-session losing streak that started as it posted its Q3 results.
What Happened: Reliance Retail launched its new online platform for beauty and personal care products, Tira. As per reports, the company looks to focus both on the online and offline presence of the brand.
See Also: You Can Now Make Small UPI Payments Through Paytm Without PIN: Here’s How
This will put Tira in direct competition with the omnichannel retailer Nykaa. Earlier in the week global analyst firm Jefferies had warned of increased competition ahead for the tech startup, as it cut its price target for the stock to ₹200 from ₹270.
However, as per reports, the portal is currently only available for employees but the company looks to launch it for the public soon.
The news has dampened the stocks further that were already facing the brunt of missing Q3 estimates. The beauty and fashion retailer's net profit sunk 70% year-over-year to ₹8.2 crore. The company's expenses surged over 36% to ₹1,455.7 crore hampering its margins.
Price Action: Nykaa was down 2.42% to trade at ₹139.40 in the late hours of trading on Thursday.
Read Next: Zomato Shares Show Signs Of Recovery: Is Q3 Related Sell-Off Over
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.