Beauty Centric Business Shows Strength as Coty (COTY) Announces Earnings

Elegant and luxury interior design of beauty cosmetic shop with wooden and gold shelf, pastel green cabinet and display in cream beige wall and decorative mirror and light for product display background

The beauty product manufacturer Coty, Inc. (COTY) announced Q3 earnings yesterday, after the close. The company came in just shy on Q3 EPS $0.05 vs FactSet $0.06 but beat on revenues $1.39B vs FactSet 1.37B and adjusted EBITDA $199.9M vs FactSet $194.2M. The real beauty of its report was on FY guidance as Coty expects EPS to be at the high end of its prior range $0.44 – $0.47 vs FactSet $0.45.

The company cited that the beauty market remains strong as demand for high-end fragrances continues to grow at double digit percentages and above historical levels. Mass beauty markets are steady at historical levels and growing at mid-single percentage. Coty shares saw a muted response however, despite share gains and market strength, due to the potential for a challenging 4Q24 as FX headwinds exiting the year may pose an obstacle.

The report overall showed positivity as many consumer names have come under pressure this earnings season. As Coty checks its reflection to see if it will be the fairest of them all, time will tell how the beauty segment fares while economic headwinds unravel. To follow additional emerging consumer names, follow the PRISM Consumer Products Index.

 

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Beauty Centric Business Shows Strength as Coty (COTY) Announces Earnings

Ashlee Vogenthaler

Markets Editor