Coty boosts core sales forecast as price hikes, strong beauty demand help
Reuters
Published Sep 20, 2023 07:43AM ET
Updated Sep 20, 2023 08:01AM ET
(Reuters) - Coty (NYSE:COTY) on Wednesday raised its annual core sales forecast on the back of higher pricing and strong demand as customers splurge on its high-end and affordable cosmetics and fragrances.
The CoverGirl parent's shares were up 6% in premarket trading.
Even though inflation has dented sales of higher-margin goods, the beauty industry has seen a boost from people prioritizing spending on smaller luxuries like makeup and perfume, keeping the post-pandemic rebound alive.
The company said since it reported earnings in August it has seen a strong momentum in beauty demand, particularly in prestige fragrances - its high-end segment that houses cosmetics and fragrances from the Hugo Boss, Gucci and Burberry brands.
Coty now expects fiscal 2024 core like-for-like (LFL) sales growth between 8% and 10%, up from its earlier outlook of LFL growth being at the top end of its target range of 6% to 8%.
However, in August, the company forecast annual profit below Wall Street estimates, on a likely hit from steeper input expenses in the first half of the year and said it would raise product prices as it battles higher costs and a strong dollar.
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Written By: Reuters
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