Coty forecasts first annual sales growth in three years
People are dressing up and putting on makeup and fragrances as they return to the office and college campus, and that’s putting shimmer and shine on Coty’s top line. The cosmetics maker now sees its annual sales returning to growth for the first time in three years.
The maker of Hugo Boss and Burberry perfumes reported a banner quarter. Revenue nearly doubled, and its net loss attributable to common shareholders shrank by nearly three-fourths.
Beefing up sales: hot fragrance consumption in China and the U.S. It’s cashing in on new fragrances marketed by actors Adam Driver and Richard Madden.
Coty’s drive to target Gen Z and Hispanic customers is also paying off. Its cosmetics brand Cover Girl has gained market share for three straight months. That hasn’t happened in five years.
The company said the fast-spreading Delta variant hasn’t impacted its business yet.
The results and bullish outlook sent investors shopping for the stock. Shares rose more than 20% in early trading Thursday before trimming some of their gains.
