Coty, the New York-based beauty company, reported a strong increase in revenue for the latest quarter, driven by growth in its prestige portfolio across key markets, including the Asia Pacific region.
Financial Results
For the fiscal second quarter ended December 31, Coty recorded a profit of $180.9 million, or 20 cents per share, compared to $283.2 million, or 27 cents per share, in the same period last year. Adjusted earnings per share came in at 20 cents, meeting analysts’ expectations.
Revenue Performance
Coty’s revenue during the quarter rose by 13% to $1.73 billion, surpassing Wall Street expectations of $1.68 billion. The company attributes this growth to the continued appeal of cosmetics as affordable luxuries for consumers.
In terms of geographical performance, the Americas region accounted for around 40% of Coty’s total sales, with revenue increasing by 10% to $687.9 million. Meanwhile, the Europe, Middle East, and Africa region saw growth of $825.7 million.
Notably, the Asia Pacific region reported a significant revenue jump of 12%. This growth can be attributed to Coty’s strong presence in travel retail business, particularly in key destinations like China’s duty-free island Hainan.
Chinese Market
Despite lower consumer beauty revenue in mainland China, Coty experienced double-digit percentage growth in prestige revenue in the region.
In conclusion, Coty’s impressive performance in the latest quarter highlights the continued demand for its products across various regions. Moving forward, the company is poised to capitalize on the growing popularity of cosmetics as affordable luxuries among consumers.
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