Coty Q2: sales rise above expectations – up 13 percent LFL

Coty Q2: sales rise above expectations – up 13 percent LFL

THE WHAT? Coty has announced its results for the second quarter and first half of the current financial year. The US beauty behemoth beat expectations with LFL sales up 13 percent yoy (+11 percent reported) in the second quarter, bringing first half sales growth to 14 percent LFL (+16 percent reported).

THE DETAILS Prestige revenue growth remained robust in the second quarter, swelling 15 percent LFL, while consumer beauty put on a solid 5 percent LFL. All regions generated double digit percentage LFL revenue growth in the quarter.

THE WHY? Sue Nabi, Coty’s CEO, explains, “The strength of our Q2 and first half results reinforce several of our convictions, including the attractiveness of the beauty market, the continuing momentum of the fragrance index, the power of our brands, Coty’s transformed and industry-leading capabilities, our new ability to create blockbuster fragrance launches, and our disciplined financial execution.

“The momentum of the global beauty market in the midst of geopolitical and macroeconomic disruptions confirms that consumers continue to gravitate to and prioritize beauty as a fundamental pillar of their well-being. Worldwide, consumers continue to purchase fragrances, cosmetics, skin and body care both as affordable luxuries and forms of self-expression. This is particularly true for mid to higher income consumers, resulting in the continued outperformance of luxury beauty.”