Coty Inc. (COTY) announced on Tuesday its financial results for the fiscal fourth quarter. While the company’s profit fell short of expectations, its revenue surpassed estimates, demonstrating resilience in demand despite prevailing inflationary pressures.
Profit and Revenue Figures
For the quarter ending June 30, Coty reported a net income of $29.6 million, or 3 cents per share. This marked a significant improvement from the previous year’s loss of $286.0 million, or 34 cents per share. Adjusted earnings per share came in at 1 cent, falling below the FactSet consensus of 2 cents.
Strong Revenue Growth
Coty’s revenue for the quarter saw a notable increase of 16% to $1.352 billion, surpassing the FactSet consensus of $1.307 billion. This growth is particularly encouraging given the current macroeconomic uncertainties. The company’s CEO, Sue Y. Nabi, stated, “In the midst of ongoing macroeconomic uncertainty, beauty demand remains resilient across our key categories and geographies, with no signs of tradedown, while the ‘fragrance index’ we have been discussing for over a year shows no sign of slowing.”
Positive Outlook for Fiscal 2024
Looking ahead, Coty anticipates solid growth in its core business for fiscal 2024. The company expects to achieve growth at the upper end of its medium-term target range of 6% to 8% in like-for-like (lfl) sales.
Stock Performance
Coty’s stock showed positive momentum in premarket trading, rising by 1.9%. Year-to-date, the stock has gained 28%, outperforming the S&P 500 index’s growth of 14.8%.
