Cosmetics
Coty: Gross sales drop 3% in Q2 regardless of sturdy perfume efficiency
Feb
The U.S. cosmetics and perfume group Coty introduced on Monday, February 7, a 3% drop in its gross sales within the second quarter of its staggered monetary 12 months.
The group stated its outcomes had been impacted by a slowdown within the mass magnificence market, significantly in coloration cosmetics, in addition to continued headwinds within the Asia Pacific area. Whereas the worldwide perfume market remained sturdy, with Coty’s status perfume portfolio rising sell-out at a excessive single digit price, it was not sufficient to offset declines in different segments.
“As we are actually halfway by means of our fiscal 12 months, it’s clear that FY25 is shaping as much as be a pivotal 12 months,” stated the group’s CEO, Sue Nabi, in a media assertion.
“On the one hand, the worldwide magnificence market continues to develop at a wholesome tempo,” she emphasised, including that “alternatively, the stress in pockets of our enterprise,” notably in China, journey retail in Asia, and in shopper magnificence within the U.S., “impacted us much more considerably in Q2.”
“These headwinds are non permanent and we must always return to stronger gross sales progress as we enter FY26,” added Sue Nabi.
Coty reported USD 1.67 billion in gross sales (-3%) in its second quarter, from October to December, pushed by perfumes. Gross sales fell 1% to USD3.34 billion within the second half.
“Perfume represents greater than 60% of our exercise,” the group’s administrative and monetary director Laurent Mercier pressured to AFP, “and we’re seeing progress of near 10%.”
Within the second quarter, the group’s gross sales within the Americas area fell by 7% to $639 million, these within the Asia Pacific area by 11% to $191.5 million. Gross sales within the Europe, Center East, Africa area elevated by 2% to $839.8 million.