THE WHAT? Coty has announced its results for the third quarter of fiscal 2023. In the three months to March 31, 2023, the company beat expectations and its recently raised guidance with sales up 9 percent (as reported) or 15 percent LFL.
THE DETAILS Core LFL sales for the year to date rose 10 percent, well above the company’s initial guidance.
In terms of categories, Prestige grew 16 percent LFL while Consumer put on a solid 12 percent LFL. Geographically, all regions saw revenue growth on a constant currency basis, Coty said, with EMEA up 18 percent LFL, Americas increasing 15 percent LFL and Asia Pacific sales inching up 4 percent LFL.
THE WHY? Coty said its strong performance was fueled by accelerating demand for prestige fragrances, retailer restocking and its own initiatives. Sue Y. Nabi, Coty’s CEO, commented, “We are once again proud to report strong operational and financial performance, with today’s Q3 results marking the eleventh consecutive quarter of results in-line to ahead of expectations. We are delivering on our balanced growth agenda, with strong LFL growth across both divisions and all regions, with growth contribution from volume, price and mix, and from our key categories including fragrances, cosmetics, and body care.
“In a complex global environment, beauty remains an advantaged category with consumers, at the sweet spot of affordable luxury, self-care, and confidence boosting. This dynamic reinforces our confidence in global beauty consumption outperforming in a variety of macroeconomic scenarios, with Coty well placed to succeed, supported by our positions as a leader in fragrances and cosmetics, and significant untapped potential in skincare, China and Travel Retail.”