Demand for fragrances continued to lift up Coty Inc. in the second quarter.
The beauty company, which holds licenses for the likes of Burberry, Gucci, Marc Jacobs and Davidoff, enjoyed net revenues of $1.73 billion in the second quarter of fiscal year 2024, ended Dec. 31, up 13 percent year-over-year. Wall Street had forecast $1.68 billion.
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Adjusted earnings per share was 25 cents, up from 22 cents in the prior year and above Wall Street forecasts of 20 cents.
Prestige revenue grew 17 percent over the quarter as Burberry Goddess continued to set new records, becoming the top fragrance launch in multiple markets, and together with Burberry’s Hero and Her, propelled strong market share gains. Away from fragrances, Coty also saw double-digit percentage like-for-like revenue growth in prestige color cosmetics brands Kylie, Burberry and Gucci, while in skin care, Lancaster continued to perform well.
Coty’s consumer beauty second-quarter revenues also grew by 7 percent with positive results across color cosmetics, mass fragrances, and mass skin and body care.
“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,” said Coty chief executive officer Sue Nabi.
“While we had expected Burberry Goddess to be a major blockbuster, the launch results are exceeding all our expectations and setting new records, fueled by a winning juice and disruptive market activations across all touch points. Burberry Goddess is the biggest launch in Coty’s history, becoming the number-one fragrance launch in many markets and resonating with consumers across all regions.”
Recently, Coty has made some licensing announcements in both divisions. It just inked a licensing deal with Italian fashion house Marni, and extended agreements with Mexx and Bruno Banani. At the same time, WWD understands that the Miu Miu license won’t be renewed.
And in August, Coty revealed that it had begun work on a Marc Jacobs prestige beauty line, which will be ready in around roughly two to three years.
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