Coty reports above-market sales growth in Q3 led by beauty demands
For its third quarter fiscal year 2024 results, Coty reported net revenues grew 8% on a reported basis and 10% on a LFL basis, with reported and LFL results supported by growth in fragrances, color cosmetics, skin care and body care.
Prestige net revenues increased 8% on a reported basis and 13% on a LFL basis. On a year-to-date basis, Prestige net revenues grew a strong 17% on both a reported and LFL basis. Net revenue growth in prestige remained strong in fragrances, cosmetics and skin care, but Q3 included a 4% negative impact from the divestiture of the Lacoste license and a 1% negative impact from FX.
Consumer Beauty net revenues increased 6% on a reported and LFL basis. On a year-to-date basis, Consumer Beauty revenues increased 8% on a reported basis and 7% on a LFL basis.
Coty’s prestige fragrance revenues grew approximately 7% as reported and 12% LFL in Q3, and approximately 18% as reported and LFL on a year-to-date basis, fueled by strength in existing icons coupled with the contribution from new launches.
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Burberry Goddess, Coty's biggest launch ever, continues to be a top global female fragrance launch, which coupled with strong growth in other Burberry franchises, drove over 50% expansion in Burberry's total net revenues in Q3. Building on this launch momentum, Marc Jacobs Daisy Wild and Cosmic Kylie Jenner are ranking as the Top 2 fragrance launches in the U.S.
"Our Q3 results reinforce Coty's established track record of delivering results ahead of the beauty market and ahead of expectations, and once again illustrate that we are executing on our imperative to drive balanced portfolio growth. In both Q3 and fiscal year-to-date, we delivered strong growth in both the Prestige and Consumer Beauty businesses, in each of our three regions, and in our core categories of fragrances, color cosmetics, skin care and body care, all supported by a broad range of our leading brands,” said Sue Nabi, Coty's CEO.
The prestige cosmetics business saw strong momentum with reported net revenue growth of over 25% in the quarter, led by its three prestige cosmetics brands, Burberry, Kylie and Gucci.
Consumer Beauty growth in the quarter mirrored the mid-single-digit percentage growth of the global mass beauty market. The company continued its social media advocacy strategy to drive improvements in earned media value and propel viral Consumer Beauty launches including CoverGirl Simply Ageless Skin Perfector Essence, CoverGirl Outlast Lipstain and Rimmel Wonder’Bond mascara. As a result, both CoverGirl in the U.S. and Rimmel in the U.K. reached Top 4 rankings for earned media value in their respective core markets.
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“In our color cosmetics business, first-to-market innovations like CoverGirl's Simply Ageless Skin Perfector Essence and Rimmel's Wonder’Bond mascara are resonating with consumers, while both brands are making strong strides in accelerating their advocacy across social media platforms. Both CoverGirl and Rimmel now rank in the Top 4 in terms of earned media value in their core markets of U.S. and U.K., respectively, which is a significant improvement from last year,” said Nabi.
In Prestige, double-digit percentage e-commerce channel growth was driven by new product launches during the quarter, including Cosmic Kylie Jenner and Marc Jacobs Daisy Wild, coupled with strong social media activations and collaboration with e-retail partners.
