Coty beats Q3 revenue estimates, eyes high-end of annual targets on strong demand

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Coty beats Q3 revenue estimates: On Monday, beauty products manufacturer Coty announced third-quarter sales that was greater than Wall Street had anticipated and said it is confident in reaching its highest yearly goal. Its mass-market and premium goods are consistently in high demand around the world, which has contributed to its success.

Coty, owner of well-known brands such as Rimmel and CoverGirl, has recently poured a lot of money into launching new products and forming partnerships with influencers and online retailers. In light of customers reevaluating their spending priorities in light of the increased prices of necessities, these initiatives seek to drive demand.

Thanks to popular new products like Marc Jacobs Daisy and Cosmic Kylie Jenner, the company’s online sales increased by over 20% in the third quarter. Additionally, there was an impressive 13% rise in like-for-like sales in Coty’s prestige division, which includes labels such as Burberry and Gucci. On the other hand, there was a robust 6% increase in the consumer beauty market, which includes Rimmel and CoverGirl.

Chief Financial Officer Laurent Mercier of Coty emphasized the prestige category’s vitality, in contrast to European rival L’Oréal’s remarked luxury market difficulties. He highlighted the fact that Coty is leading the pack in this category, with the brand increasing its market share on every continent.

Surpassing analysts’ projections, Coty’s total net revenue for the third quarter climbed by 7.5% to reach $1.39 billion. In contrast to last year’s figure of $168.1 million, or 19 cents per share, adjusted net income fell to $43.8 million, or 5 cents per share. The equity swap mark-to-market benefit reversal, which came to $133 million, was the cause of this decline because it cancelled out profit expansion.

Coty now expects core sales for fiscal 2024 to be between 9% and 11% higher than originally predicted. In addition, the firm anticipates an adjusted per-share profit of 44 cents to 47 cents for the year, which is the upper half of its previous range.

Mia Collins

Mia's love for beauty innovation and her insights into modern lifestyle choices make her the go-to writer for readers seeking to stay ahead of the style curve.

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