High Fragrance Demand Drove the Beauty Conglomerate’s Revenues to a 13 Percent Increase
Coty continues to ride the wave of fragrance demand, delivering robust results in the second quarter.
The beauty conglomerate, which holds licenses for brands including Burberry, Gucci, Marc Jacobs, and Davidoff, reported net revenues of $1.73 billion for the second quarter of fiscal year 2024, ending Dec. 31, marking a notable 13 percent increase year-over-year. These figures surpassed Wall Street’s expectations, which had projected revenues of $1.68 billion.
Adjusted earnings per share stood at 25 cents, up from 22 cents in the previous year and surpassing Wall Street forecasts of 20 cents.
Prestige revenue soared by 17 percent during the quarter, driven by the strong performance of Burberry Goddess, which emerged as the top fragrance launch in numerous markets, alongside Burberry’s Hero and Her, contributing to substantial market share gains. Beyond fragrances, Coty witnessed double-digit growth in prestige color cosmetics brands such as Kylie, Burberry, and Gucci, while Lancaster excelled in the skincare segment.
Coty’s consumer beauty segment also experienced a 7 percent revenue increase in the second quarter, buoyed by positive results across color cosmetics, mass fragrances, and mass skincare 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.”
Amidst its continued success, Coty has announced strategic licensing agreements in both divisions. The company recently finalized a licensing deal with Italian fashion house Marni and extended agreements with Mexx and Bruno Banani. Simultaneously, Coty has announced it will not renew its Miu Miu license.
Looking ahead, Coty disclosed plans for a Marc Jacobs prestige beauty line, expected to be launched in approximately two to three years, showcasing the company’s ongoing commitment to innovation and expansion within the beauty industry.