Coty Inc., one of the world’s largest beauty companies with a portfolio of brands across fragrance, color cosmetics, and skin and body care, has increased its outlook for the first half and full year FY24.

Factors Driving Acceleration

Since providing its guidance on its FY23 earnings call four weeks ago, Coty says it has seen strong momentum in beauty demand across its key markets and categories, particularly in prestige fragrances. At the same time, Coty’s recent launch of its Burberry Goddess fragrance is setting new market records. Not only was Burberry Goddess the winning launch in the U.S. in August, with market sales several times higher than recent competitive blockbuster launches, but two of Coty’s fragrance innovations are among the top five of the Fall. According to the company, Coty now has three fragrance lines in the U.S. top ten.
 
The combination of these factors is driving acceleration in Coty’s volumes and sales, with the Company now expecting core LFL sales growth in first half FY24 of +10-12%, an increase from its earlier outlook of +8-10%. This strength is supporting Coty’s increased FY24 core LFL sales growth outlook of +8-10%, up from its earlier guidance to be at the top end of its medium-term target range of +6-8%.
 
Commenting on the strong business momentum, Sue Nabi, Chief Executive Officer of Coty, said: “The success of Burberry Goddess across key markets confirms that Coty is the go-to destination to create top quality winning fragrances and execute unique and disruptive campaigns. Having spent the past three years strengthening Coty’s fundamentals and elevating Coty’s organizational capabilities across our categories, we enter the next phase of growth with best-in-class innovation and marketing power.”

More Coty News

In July, Coty entered into a binding letter of intent to sell a 3.6% stake in Wella, a German hair care company, to investment firm IGF Wealth Management for $150 million.