Coty Inc. ( NYSE: COTY ) shares marked a modest gain in premarket trading on Wednesday after raising Q1 2023 guidance and detailing multi-year sales forecasts.
Ahead of an investor event at its skincare R&D and manufacturing facility in Monaco on Wednesday the company said that skincare-focused strategies are already paying dividends, with beauty demand picking up sharply overall in the current quarter. As such, the company raised forecasts for sales growth to 8% to 9% from a previous 6 to 8% forecast.
“The improved outlook is being fueled by both Prestige and Consumer Beauty, and across Europe, the Americas, and Global Travel Retail,” the company said. “The strong sales momentum also underpins a stronger Q1 gross margin outlook, despite continued inflationary pressures.”
During the event, due to start at 2PM in Monaco, management is set to outline “upcoming operational and portfolio milestones, early evidence of success, and Coty’s financial goals through FY25 and beyond.”
“Coty’s skincare portfolio is one of the most exciting growth areas in our business, with revenues on track to double to $500M-600M by FY25,” CEO Sue Y. Nabi “We have begun our skincare revolution in Hainan and mainland China, where we are already seeing proof that our brands, formulations, and communication can win over consumers.”
The cosmetics retailer is set to rely upon brands including Lancaster, Orveda, Kylie Skin and SKKN by Kim, among others.
Constantin Sklavenitis, Coty’s Chief Prestige Brands Officer, again reiterated the importance of initial tests in China and pickup in the key growth market.
“The transformation of our skincare portfolio has already begun with Lancaster, which in the past year has become one of the fastest growing brands in Hainan amongst key retailers,” he said. “This is critical confirmation that Coty has the technology, brands, strategic clarity, and commercial capabilities to win in skincare in the coming years.”
Shares of Coty ( COTY ) rose 2.7% in premarket trading on Wednesday.
Read more on Bank of America’s bullish outlook for the stock .
For further details see:
Coty raises quarterly guidance, outlines long-term targets ahead of investor day