Covergirl makeup, owned by Coty Inc., is sold in Manhattan, New York, U.S., February 7, 2022. REUTERS/Andrew Kelly/File photo
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Aug 25 (Reuters) – Coty Inc (COTY.N) beat Wall Street expectations for fourth-quarter revenue on Thursday, saying the beauty category was blemish-free and showed no signs of slowing down from decades of growth. high inflation, raising its shares. around 11% in morning trading.
Lipsticks and foundations are coming off the shelves and higher-income consumers are indulging in smaller luxuries as high inflation decades ago makes their larger shopping plans unaffordable, a phenomenon known as the “lipstick effect”. read more
Perfume maker Hugo Boss expects full-year 2023 adjusted earnings per share to rise in the mid-teens from a year earlier.
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Rivals Estee Lauder and L’Oreal (OREP.PA) also reported better-than-expected quarterly sales as higher-income consumers invest in beauty products to prioritize personal care as socializing resumes after two years . read more
CFRA Research analyst Zachary Warring said “high-end products should hold up better than others,” at a time when the broader retail sector is battling weakening consumers and building up inventories as companies Prices rise to combat inflation.
Coty Chief Executive Sue Nabi told Reuters in an interview that the company would undertake more price hikes this year, after an initial round in fiscal 2022, to boost profit margins.
The company has also been accelerating marketing investments in live streaming and promotions on social media sites like TikTok, which play a big role in influencing young consumers’ purchasing decisions.
Net income in the fourth quarter ended June 30 rose 10% to $1.17 billion, beating analysts’ average estimate of $1.14 billion, according to IBES data from Refinitiv.
Travel retail has been a key contributor to the company’s growth in the reported quarter, driven by a revival in global tourism, Nabi said on an earnings call.
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Reporting from Ananya Mariam Rajesh in Bangalore; Edited by Shinjini Ganguli
Our standards: the Thomson Reuters Trust Principles.
Source: www.reuters.com