Coty embarked on a strategic reconstruction in 2019 and the plan – plus media reinvestment – has paid off handsomely in its Q2 2022 performance. The multinational’s prestige revenues increased 12 per cent to US$1.008 billion, or 64 per cent of total sales, as key markets and travel retail rebounded.
The re-launch and expansion of Kylie Cosmetics and the strength of new fragrance launches including Gucci Flora Gorgeous Gardenia and Burberry Hero were major contributors to the upswing. The Chloe and Hugo Boss fragrance franchises and Gucci makeup also enjoyed double digit growth in the second quarter.
For the first time in five years, all four of Coty’s top cosmetics brands – CoverGirl, Rimmel London, Max Factor and Sally Hansen, gained market share worldwide. Double digit growth in all geographic regions pushed revenues up 12 per cent in Q2 to US$570.2 million, or 36 per cent of global sales.
Skincare was also a highlight in Q2. Coty licensed the luxury prestige Orveda brand, co-founded by current CEO, Sue Y. Nabi, in 2014, and launched the CoverGirl Clean Fresh skincare range, formulated with 100 per cent vegan and clean ingredients, late last year.
During the quarter, we continued to execute on our strategic growth pillars, allowing us to deliver sales, profit, and leverage results inline or ahead of guidance for the sixth consecutive quarter, noted Nabi.
“The second quarter, and even more so the first half, further illustrates the virtuous cycle we have created. Strong topline growth combined with gross margin expansion and strong cost execution are generating both profit growth and re-investment in the business. This combination has contributed to sequentially improving sell-out trends in Q2, which sets the stage for accelerating sales growth in the second half.”