Coty has announced its results for the first quarter of its current fiscal year. For the three months ended September 30, the U.S. beauty giant posted sales growth of 18 percent (LFL and reported), well ahead of expectations.
Prestige led the way with 23 percent reported sales growth, while Consumer Beauty posted a solid 10 percent.
Regionally, EMEA was the star performer with a 20 percent increase, while the Americas grew 17 percent and Asia Pacific 16 percent.
Given Coty’s strong Q1 performance, the company now expects FY24 LFL sales growth of +9% to +11%, ahead of its recently raised guidance of +8% to +10%. For the first half of FY24, Coty now expects LFL sales growth in the range of +11% to +13%, up from the previous guidance of +10% to +12%.
Sue Nabi, Coty’s CEO, commented, “We are proud of our great first quarter results, with sales growth once again among the best in our peer group and ahead of the beauty market. Coty continues to deliver on our balanced growth agenda, with strong LFL growth across both divisions and all regions, with growth contributions from volume and premiumized mix, complemented by targeted pricing, and from our key categories including fragrance, cosmetics and skin care.
“While the external environment remains complex and consumers are cautious in their spending, the beauty category remains advantaged at the intersection of affordable luxury, self-care and confidence. We remain well positioned to benefit from this strong beauty performance, while capitalizing on the many white space opportunities in our portfolio, including women’s fragrance, ultra-premium fragrance, skin care, China and travel retail. These opportunities and our strong first quarter performance allow us to raise our FY24 guidance for the second time this fiscal year.
