Fragrance demand continued to boost Coty in the second quarter.
The beauty company, which owns licenses for Burberry, Gucci, Marc Jacobs, Davidoff and more, reported net revenue of $1.73 billion in the second quarter of fiscal 2024 (ending December 31), an increase of 13% year over year. did. Wall Street had expected $1.68 billion.
Adjusted earnings per share were 25 cents, up from 22 cents a year earlier and beating Wall Street expectations of 20 cents.
Prestige revenue increased 17% sequentially as Burberry Goddess continued to set new records, becoming the top fragrance launch in multiple markets and driving strong market share growth alongside Burberry Hero and Her . Outside of fragrances, Coty achieved double-digit year-on-year sales growth for its luxury color cosmetics brands Kylie, Burberry and Gucci, while Lancaster continued to perform well in skin care.
Second-quarter revenue for Coty’s Consumer Beauty division also increased 7% with strong results across color cosmetics, consumer fragrances, consumer skin care and body care.
“The strength of our second quarter and first half results was driven by the attractiveness of the beauty market, continued momentum in the fragrance index, the strength of our brands, Coty’s ability to lead in a transformed industry, and our new capabilities. It reinforces some of our beliefs, including the launch of a blockbuster fragrance and our disciplined financial execution,” said Sue Nabi, Coty’s chief executive officer.
“We expected Burberry Goddess to be a huge hit, and the launch results have exceeded all our expectations, driven by the winning juice and disruptive market activation across all touchpoints. “Burberry Goddess is Coty’s biggest launch ever, the number one fragrance launch in many markets, and resonates with consumers everywhere.”
Coty recently made licensing announcements in both divisions. She just signed a licensing deal with Italian fashion house Marni and extended her contract with MEX and Bruno Banani. At the same time, WWD understands that Miu Miu’s license will not be renewed.
And in August, Coty revealed that work has begun on the Marc Jacobs Prestige Beauty line, which is expected to be completed within about two to three years.