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Covergirl makeup, owned by Coty Inc, is seen for sale in Manhattan, New York City, U.S., February 7, 2022. REUTERS/Andrew Kelly/File Photo Acquire Licensing RightsNov 7 (Reuters) - Coty (COTY.N) on Tuesday raised its annual core sales forecast on the back of higher pricing and strong demand from customers who snapped up the CoverGirl parent's new makeup and fragrance launches. Coty's efforts to launch key products such as Burberry Goddess in its high-end "prestige" category and CoverGirl's Yummy Gloss in the consumer beauty category drove a double-digit increase in these segments. The company now expects fiscal 2024 core like-for-like sales growth between 9% and 11%, compared with its previous outlook of an 8% to 10% rise. On an adjusted basis, Coty earned 12 cents per share, compared with analysts' estimates of 17 cents.

Persons: Andrew Kelly, Laurent Mercier, Z, Coty's, Thomas Hayes, Coty, Ananya Mariam Rajesh, Shounak Dasgupta Organizations: Coty Inc, REUTERS, Coty, Burberry, Reuters, Thomson Locations: Manhattan , New York City, U.S, United States, Europe, Swiss, Bengaluru

Raw material and freight costs have eased from pandemic-era highs, but a tight labor market is exacerbating the drag of persistent inflation on production costs. This overshadowed Coty's quarterly revenue beat despite customers splurging on its high-end and affordable fragrances and cosmetics, ranging from Hugo Boss to Gucci. The company reported a quarterly adjusted profit of 1 cent per share, missing estimates of 2 cents, according to Refinitiv data. Coty forecast 2024 adjusted profit between 44 cents and 47 cents per share. Rival Estee Lauder (EL.N) had also provided downbeat annual forecasts, hurt by frail recovery in travel retail and slowing U.S. demand.

Persons: Andrew Kelly, Hugo Boss, Gucci, Laurent Mercier, Mercier, Estee Lauder, Javier Gonzalez Lastra, EL.N, Juveria Tabassum, Ananya Mariam Rajesh, Pooja Desai Organizations: Coty Inc, REUTERS, Coty, Reuters, L'Oreal, Tema, Thomson Locations: Manhattan , New York City, U.S, Bengaluru

The results reflect the recent trend of luxury shoppers indulging in lipsticks and fragrances even as they shun high-end purchases amid rising interest rates and product prices. Coty said a post-pandemic recovery in travel retail extended into the quarter. The company's prestige division, home to cosmetics and fragrances from the Hugo Boss, Gucci and Burberry brands, reported a jump of more than 30% in global travel retail sales across all regions. In contrast, peer Estee Lauder (EL.N) forecast weaker sales and profit last week, blaming slow recovery in travel retail, especially in Asia. Coty raised its 2023 adjusted per-share profit expectations to between 38 cents and 39 cents, from 35 cents to 36 cents earlier.

☆ Coty raises profit forecast on resilient demand, price hikes
▼ + stars: | 2023-02-08 | by ( Ananya Mariam Rajesh | ) www.reuters.com time to read: +2 min

[1/2] Gucci fragrances, owned by Coty Inc., are seen for sale in Manhattan, New York City, U.S., February 7, 2022. profit between 35 cents/shr and 36 cents/shrFeb 8 (Reuters) - Coty Inc (COTY.N) raised full-year profit forecast on Wednesday, betting on price hikes and resilient demand for its fragrances and cosmetics even as inflation pinches consumer wallets. The company's shares rose about 4% to $10.80 in premarket trading after also beating expectations for second-quarter revenue and profit. Analysts expect China's move in early December to relax its toughest COVID curbs and lift some travel restrictions to benefit luxury and beauty companies that had flagged a hit to sales in the country. The CoverGirl parent now expects 2023 adjusted profit of between 35 cents and 36 cents per share, against a prior forecast of 32 cents to 33 cents per share.

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