Q3 2024 Coty Inc Earnings Call Transcript
Key Points
- Coty Inc (COTY) reported third-quarter results that exceeded expectations for the third time this year, indicating strong performance across key brands and segments.
- The company is experiencing robust growth in its Prestige segment, with double-digit growth and significant market outperformance, driven by successful fragrance launches and strong sales in both the U.S. and Europe.
- Coty Inc (COTY) is seeing positive momentum in e-commerce, which now represents about 20% of the business, with significant contributions to growth in both the Consumer Beauty and Prestige divisions.
- Innovations in product offerings and marketing strategies, particularly in the Consumer Beauty segment, are becoming viral and are well-received by influencers and consumers, enhancing brand visibility and sales.
- The company is optimistic about the recovery and future performance of the U.S. mass cosmetics market, supported by improvements in recent figures and ongoing innovations.
- Coty Inc (COTY) noted some softness in the U.S. mass cosmetics market, particularly impacted by economic pressures on lower-income consumers and shifts in consumer preferences.
- Despite strong e-commerce growth, the brick-and-mortar segment, especially in the U.S., is showing weaker performance relative to online sales.
- The company faces challenges in the fragrance market due to increased competition, although it continues to perform well with new and existing fragrance lines.
- There are concerns about the sustainability of high growth rates in the fragrance category, with discussions around market normalization and potential slowdowns.
- Coty Inc (COTY) is navigating uncertainties in global markets, including potential impacts from economic conditions and changes in consumer spending behaviors.
Good morning and good afternoon, everyone. My name is Ashley, and I'll be your conference operator today. At this time, I would like to welcome everyone to Coty's Third Quarter Fiscal 2024 Question-and-Answer Conference Call. As a reminder, this conference call is being recorded today, May 7, 2024, at 8:15 a.m. Eastern Time or 2:15 p.m. Central European Time. Please note that on May 6, at approximately 4:30 p.m. Eastern Time or 10:30 p.m. Central European Time, Coty issued a press release and prepared remark webcast, which can be found on our Investor Relations website.
On today's call are Sue Nabi, Chief Executive Officer; and Laurent Mercier, Chief Financial Officer.
I would like to remind you that many of the comments today may contain forward-looking statements. Please refer to Coty's earnings release and the reports filed with the SEC, where the company lists facts that could cause actual results to differ materially from the forward-looking statements. In addition, except where noted, the discussion of Coty financial results and Coty expectations reflect certain adjustments as
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