Coty posts better-than-expected revenue on online strength

Coty Inc beat analysts' estimates for quarterly revenue on Friday, as shoppers staying at home due to the COVID-19 pandemic bought more of its beauty products online, sending the company's shares 5% higher in premarket trading.

Cosmetics makers’ sales have improved from lockdown lows in the past few months as a surge in online orders and higher demand for skin-care products offset the blow from weak traffic at brick-and-mortar stores.

To grab a share of the e-commerce boom, Coty has been ramping up investments in its digital platform and has also launched new websites in Australia and Europe.

“We have seen double-to-triple digit e-commerce sell-out growth across most markets, with our e-commerce penetration as a percentage of our overall sales doubling to 13%,” Chief Executive Officer Sue Nabi said in a statement.

Net income attributable to the company rose to $221.4 million, or 24 cents per share, in the first quarter ended Sept. 30, from $52.3 million, or 7 cents per share, a year earlier.

On an adjusted basis, Coty earned a profit of $83.6 million, or 11 cents per share, compared with $50.5 million, or 7 cents per share, a year earlier.

Net revenue fell about 13% to $1.69 billion, but was higher than analysts’ estimates of $1.08 billion, Refinitiv IBES data showed.