THE WHAT? Coty has reported a 15 percent sales rise for the third quarter in FY22, to US$1.8 billion on a reported basis.
THE DETAILS Like-for-like sales grew by 19 percent in the quarter, which was driven by the Prestige and Consumer segments.
Geographically, revenue growth was fuelled by the continued recovery in many EMEA markets, a strong rebound in Travel Retail, and continued momentum in the U.S.
E-commerce maintained its momentum, with double digits e-commerce sales growth in Q3 and year to date, supporting high teens e-commerce penetration, even as stores re-opened.
The Prestige segment saw ‘robust’ YOY sales growth of 21 percent, with Prestige fragrances continuing to accelerate, increasing 20 percent in Q3. Gucci Beauty, Chloe, Burberry and Hugo Boss saw particularly strong growth.
Consumer Beauty revenues rose 8 percent as reported, with a strong performance across color cosmetics, mass fragrances, and body care.
THE WHY? Commenting on the operating results, Sue Y. Nabi, Coty’s CEO, said: “Our Q3 earnings mark the seventh consecutive quarter of Coty reporting results inline to ahead of expectations. I am extremely proud of the organization for delivering these results, and outperforming the overall beauty market, in an increasingly volatile environment.
“This confirms that Coty has the brands and the people to win in the beauty market, guided by our strategic priorities of delivering above-market sales growth and expanding gross margin, allowing for brand reinvestment, profit expansion and continued deleveraging.”