Beauty retailer Coty saw higher net revenue in the fiscal first quarter of FY24 on the back of double-digit growth in prestige and consumer beauty segments.
Net sales rose 18 per cent year over year to $1.64 billion in the three months ended September 30. This comes as the prestige segment jumped 23 per cent to $1.06 billion while the consumer beauty segment climbed 10 per cent to $576.7 million.
“While the external environment remains complex and consumers are being considered in their spending, the beauty category remains advantaged, at the nexus of affordable luxury, self-care, and confidence boosting,” said Sue Nabi, Coty’s CEO.
“We remain well positioned to benefit from this strong beauty performance, while capitalizing on the multiple white space opportunities in our portfolio, including female fragrances, ultra-premium fragrances, skincare, China and travel retail.”
Meanwhile, gross margin declined to 63.5 per cent as the company swung to a net loss of $1.7 million, attributed to a higher benefit in the previous year from a change in Wella’s fair value.
In July, Coty said it agreed to sell a 3.6 per cent stake in Wella to IGF Wealth Management and is committed to divest its remaining 22.3 per cent stake in the hair products retailer by FY25.
For the first half of the fiscal year, the company raised its forecasted like-for-like revenue growth to 11 to 13 per cent.
