Coty sees higher-than-expected growth possible, despite posting a loss in the first fiscal quarter of 2024, which ended on 30 September. On Tuesday, as reported by the French news agency Reuters, the US luxury and beauty conglomerate raised its annual sales forecast thanks to increased demand and higher prices. However, the company ended the first fiscal period of 2024 in the red.
The latest launch of its CoverGirl brand has had a lot to do with this revision, as it has become a best-seller in a short time. This increase is also thanks to new launches in Burberry Goddes and its high-end cosmetics. In particular, the perfume from this line has become the number one fragrance in key markets and has managed to raise Burberry's iconic sales numbers.
Chief financial officer Laurent Mercier denied to Reuters that there was a perceived decline in any of its categories and said prestige fragrances are growing at a rapid pace in the United States. The company forecasts fiscal 2024 comparable sales growth of 9% to 11%, compared to its previous outlook of 8% to 10% growth. The company itself announced in a press release issued yesterday that it saw increased demand for colour cosmetics, mass fragrance and personal care products.
"We are proud of our excellent first quarter results, with sales growth once again among the best in our group and ahead of the beauty market. Coty continues to deliver on its balanced growth agenda, with strong LFL growth in both divisions and across all regions," said Sue Nabi, Coty's chief executive officer.
As a result of the optimal results that Coty expects, it has taken advantage of the same press release to confirm that the sale of part of its stake in Wella has been cancelled. Last summer, Coty announced that it was selling more than 3% of its shares in Wella to the IGF Wealth Management fund, and it was expected that it would be made official and effective in the next two months, which has not happened, and as the company announces, it will not happen.