Coty Raises Revenue Forecast, Expects Earnings To Surpass $1B
Coty Inc is expecting its revenue to grow for the next several years with the revival of its travel retail business and sales in the U.S. and China market continuing to improve.
“The beauty market has been consistently growing at 3 percent to 5 percent rate and we expect to overperform this,” Coty Chief Executive Officer Sue Nabi said.
The company has forecasted net revenue growth of 6 percent to 8 percent for the three years leading up to 2025, and it expects growth to continue in the following years.
Coty is betting on its online business and its high-end brands to help its business make $1 billion in core earnings by next year. The company is projecting its core earnings to increase at a rate of 9 percent to 11 percent annually through 2025 and beyond.
The company is also continuing to focus more on fragrance, skincare and cosmetic brands such as CoverGirl and Max Factor, which have been growing at a faster pace since the reopening of markets, by rolling out new products, investing in advertising and striking out partnerships with various celebrities.
However, analysts are not so bullish and expect the company’s earnings to reach $987.5 million.
“The company made a bold proclamation by laying out a target (at) a level that rivals peer & partner algorithms,” Jefferies analyst Stephanie Wissink said.
Coty’s shares were down 1.8 percent even though the company raised its fiscal 2022 forecast.
Originally published at https://retailbum.com on November 19, 2021.
