Coty raises sales forecast as duty-free demand rebounds
Nov. 8 (Reuters) – Cosmetics maker Coty Inc (COTY.N) raised its forecast for annual sales of organic products on Monday, boosted by a recovery in retail as buyers in Asia and Europe bought more of her Gucci makeup and Burberry perfumes.
Coty’s shares jumped 9% pre-market, as quarterly net sales for its premium segment rose 35.1% to $ 870.7 million.
The Kylie Cosmetics seller said he is optimistic for the current holiday quarter as demand for perfumes and foundations has increased amid easing restrictions that have led to a gradual return to offices, offices, and foundations. parties and social events.
Coty, whose sales have been affected by low traffic at duty-free stores due to pandemic-induced restrictions for more than a year, is now experiencing a recovery in its retail business as shoppers return to travel .
“Travel retail is clearly back. It’s not at pre-pandemic levels (but)â¦ it’s clearly helping prestige performance,” Coty chief executive Sue Nabi told Reuters.
Coty, which struggles with industry-wide supply chain bottlenecks and the impact of inflation, forecasts adjusted earnings per share for fiscal 2022 between 19 cents and 23 cents, well above the estimate of 20 cents.
He said cost pressures were being managed through high-end product launches, cost reductions, localized sourcing and contract freight.
Parent company Max Factor is forecasting organic percentage sales growth in fiscal 2022 at a low to mid-exchange rate, above its previous growth forecast for teens.
The owner of CoverGirl said its net revenue from continuing operations increased 22% on a reported basis to $ 1.37 billion in the first quarter ended September 30. Adjusted earnings were 8 cents per share, 5 cents above estimates.
Separately, Coty has announced that it will sell a 4.7% stake in professional beauty company Wella to KKR & Co Inc (KKR.N) in a deal valued at around $ 215.7 million. dollars.
After the sale, Coty will own a 25.9% stake in Wella.
Reporting by Praveen Paramasivam and Aditi Sebastian in Bengaluru; Editing by Krishna Chandra Eluri
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