Coty reports strong Q3 FY24 growth, raises full-year outlook

Coty reports strong Q3 FY24 growth raises full year outlook

This month, the American multinational beauty company released its third-quarter financial results for fiscal year 2024, showcasing a robust performance that significantly exceeds market expectations. The company has demonstrated strong growth across its product lines, particularly in the prestige and consumer beauty segments, leading to an optimistic revision of its full-year financial guidance. 

Revenue & earnings growth

Coty reported an 8% increase in net revenues to $1.38 billion for Q3 FY24, and this growth was driven by strong performances across its prestige and consumer beauty segments. Adjusted earnings per share for the quarter were $0.06, surpassing analysts’ expectations and reflecting significant income growth and margin expansion.

In the company’s most recent earnings call on May 6, Sue Nabi, Coty CEO, explained that specific to the “Americas, like-for-like (LFL) sales grew 11% in Q3 and 13% fiscal year-to-date, with Latin America, Canada, and the regional Travel Retail channel delivering very strong double-digit percentage growth in the quarter.” 

Product & market performance

Coty attributed its strong Q3 performance to high demand for prestige fragrances and successful new product launches, notably the Burberry Goddess fragrance, which has set new market records. The Burberry Goddess launch was particularly successful in the US, where it outperformed recent competitive launches.

Coty’s fragrance innovations have dominated the market, with three of its lines in the US top ten. As Nabi explained, “In Q3, we launched Marc Jacobs Daisy Wild and Cosmic Kylie Jenner, both of which have already reached the top ranks: Marc Jacobs Daisy Wild is the #1 fragrance launch in the US calendar year-to-date, which has also benefitted the full Daisy franchise, and, Cosmic Kylie Jenner, the first fragrance launch under Kylie, is the #2 fragrance launch in the US calendar year-to-date.”

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