Coty, the cosmetics company, reported higher revenue for its fiscal fourth quarter, driven by strong consumer demand for its perfume, makeup, and other products, particularly its prestige brands.
Profit Margins Increase
In the three months ended June 30, Coty generated a profit of $29.6 million, or three cents per share, compared to a loss of $286.0 million, or 34 cents per share, in the same period last year.
After adjusting for one-time items, the company's adjusted earnings per share came to a penny. Analysts surveyed by FactSet had expected adjusted earnings of two cents per share.
Revenue Growth of 16%
Coty's revenue experienced a significant increase of approximately 16% to reach $1.35 billion, exceeding analysts' expectations of $1.31 billion.
The growth in revenue was primarily attributed to the strong performance of the company's prestige category. Revenue for Coty's prestige brands rose by 21% during the quarter, while consumer-beauty revenue increased by 9%.
Resilient Beauty Demand
According to Chief Executive Sue Nabi, "beauty demand remains resilient across our key categories and geographies, with no signs of tradedown." Additionally, she noted that the "fragrance index" they have been monitoring for over a year continues to show no signs of slowing down.
Furthermore, Nabi highlighted that Coty is expanding its presence in the ultra-premium fragrance category.
Geographical Revenue Breakdown
In terms of geographical performance, revenue rose by 11% in the Americas, 15% in Europe, the Middle East, and Africa, and a significant 34% in the Asia Pacific region.
Overall, Coty's fiscal fourth-quarter results reflect the company's ability to attract consumers with its prestige brands and capitalize on resilient beauty demand.
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