The cosmetics and perfumery group Coty delivered a turnover above expectations, thanks to a strong demand, especially in the United States.
Coty Group reported fiscal fourth-quarter sales of $1.17 billion, compared with a consensus of $1.15 billion, and sales were up 10 percent from a year earlier. Net loss from continuing operations was $286 million, compared to a $221 million deficit a year earlier. Loss per share was 34 cents, compared with 29 cents in the comparable period last year. Revenues and profits for fiscal year 2023 are expected to grow, “in line with our medium-term objectives”, the group said.
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Growth was seen across all channels, bucking some of the trends seen by rivals such as Estée Lauder Companies, which saw a decline in sales in China in the fourth quarter.
“The beauty category shows no signs of slowing down, especially in prestige, but also in the high-end
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Beauty sales were up 7% as reported and 8% on a like-for-like basis. Coty saw double-digit growth in nearly all EMEA markets, and travel retail sales doubled thanks to category expansion and the group’s premium strategy.
This is partly due to the “lipstick effect”. Indeed, Americans tend to turn to cosmetics and fragrances to fight the inflation blues.
However, even with positive growth, Sue Nabi told Reuters that the company will make further price increases this year, after an initial round of hikes in early 2022, to boost profit margins.
“The quarterly results continue to confirm that Coty’s renaissance path is largely independent of macroeconomic issues and is supported by a resilient beauty category and steady execution,” writes Jefferies analyst Stephanie Wissink.
Featured photos : © Dennis Stenild
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Passionnée depuis son plus jeune âge par l’art et la mode, Hélène s’oriente vers une école de stylisme, l’Atelier Chardon-Savard à Paris, avec une option Communication. Afin d’ajouter des cordes à son arc, elle décide de compléter sa formation par un MBA en Management du Luxe et Marketing Expérientiel à l’Institut Supérieur de Gestion à Paris dont elle sort diplômée en 2020. Elle a notamment écrit des articles lifestyle et beauté pour le magazine Do it in Paris et se spécialise en rédaction d’articles concernant le luxe, l’art et la mode au sein du magazine Luxus Plus.********** [EN] Passionate about art and fashion from a young age, Hélène went to a fashion design school, Atelier Chardon-Savard in Paris, with a Communication option. In order to add more strings to her bow, she decided to complete her education with an MBA in Luxury Management and Experiential Marketing at the Institut Supérieur de Gestion in Paris from which she graduated in 2020. She has written lifestyle and beauty articles for Do it in Paris magazine and specializes in writing articles about luxury, art and fashion for Luxus Plus magazine.