Coty said third quarter revenues grew 8 percent on a reported basis to USD 1.4 billion, driven by growth in both the beauty firm’s prestige segment, especially in Asia Pacific, and consumer beauty segment.
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The New York-based firm said Asia Pacific revenues totalled USD 168.6 million, or 12 percent of Coty sales, up 7 percent on a reported basis, driven by double-digit growth in prestige, partially offset by a 3 percent negative impact from foreign exchange.
Prestige revenue growth in the region was driven by strong double-digit growth in Asia excluding China and the regional travel retail channel. In China, Coty’s prestige revenues nearly tripled in Hainan, while consumer beauty revenues were lower as retailers worked down inventory levels.
On a like-for-like basis, Asia Pacific revenues increased 11 percent in the third quarter.
Globally, prestige revenues totalled USD 867.2 million or 63 percent of Coty sales, up by 8 percent on a reported basis, or 13 percent on a LFL basis.
Meanwhile, consumer beauty revenues were up 6 percent to USD 518.4 million. On a reported basis, growth was in line with the global mass beauty market, and supported by growth in mass fragrances, mass skin and body care and color cosmetics in most countries, partially offset by weakness in the mass colour cosmetics category in the United States, said the beauty company.
“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.
“Coty’s global and multi-category presence is proving to be a key area of strength and differentiation, as subdued trends in a very few markets and subcategories, such as U.S. mass cosmetics, are more than offset by continued strong momentum in the majority of our core business areas, including global prestige and mass fragrances, where our business grew by a low-double-digit percentage, and prestige cosmetics, where our sales grew over 20 percent. In fact, in prestige fragrances, we’ve seen category growth trends accelerate over the course of the quarter, speaking to the continued appeal of fragrances to a broad set of consumers. And in this favorable backdrop, Coty is gaining prestige fragrance market share across regions.”
Earlier this year, Coty said it had signed a new agreement with Italy’s Etro to produce and distribute the luxury fashion house’s signature fragrance lines and home scent collections beyond 2040.