American fashion and beauty giants recorded plunging Asia and APAC revenues in their respective quarterly updates August, citing the negative impact of Covid-19 restriction in mainland China for the lacklustre sales result.
U.S. cosmetics and fragrance giant Coty Inc. announced on August 25 Asia-Pacific sales for the fourth quarter ending June 30 fell 2 percent to USD 141.1 million, representing 12 percent of total Coty sales.
During the quarter, Coty said sales were pressured due to the resurgence of Covid-19 in China and related lockdown measures through most of the quarter, particularly in April and May. Outside of China, however, nearly every market delivered strong double-digit growth, led by the continued recovery of travel retail, the company added. For full-year fiscal 2022, Asia Pacific net revenue reached USD 658.3 million, up 14 percent.
“While the external environment became increasingly complex through the year, Coty proved resilient through operational excellence that enabled us to surpass our guidance and deliver double-digit sales and EBITDA growth,” said Sue Y. Nabi, Coty’s CEO.
“We have generated sales growth in both Q4 and FY22 that is well above the underlying beauty market and among the best in our competitive set.”
On August 24, Guess Inc. announced Asia revenues increased 3 percent in U.S. dollars and 15 percent in constant currency for the second quarter ending July 30, while retail comp sales in the Asian region, including e-commerce, decreased 2 percent in U.S. dollars and increased 10 percent in constant currency. Likewise, Asia revenues for the first half of the year increased 2 percent in U.S. dollars and 11 percent in constant currency. Half-year retail comp sales, including e-commerce, decreased 6 percent in U.S. dollars and increased 2 percent in constant currency, the company added.
“We continue to focus on executing our very important brand elevation strategy, which impacts most parts of our business, starting with the product. I am proud of how our teams have worked together to align the design of the product, marketing campaigns, visual presentations in our stores and websites and the product buys to service our customers effectively and optimize sales,” said Paul Marciano, co-founder and chief creative officer.
“Our customers are responding well to the assortments we offer across the Guess and Marciano collections and I believe our brands are well positioned to continue to gain market share.”
Elsewhere, at Abercrombie & Fitch Co., the youth-focused retailer reported on August 25 second-quarter sales in the Asia-Pacific region plunged 33 percent to USD 27.7 million during the three months ending July 30.