The cosmetics maker reported a surprise profit in Q1 with demand for beauty and fragrance up from the lockdown lull
Coty's CEO Sue Y. Nabi was appointed the top job in July
Coty has reported a surprise profit for Q1 as demand for its beauty business ramps up following a lockdown low.
The cosmetics maker said its fragrance and beauty markets had recovered from the struggling downturn, with improvements being seen worldwide.
In the US, Coty’s mass beauty business maintained a ‘stable’ market share in retail, supported by strong growth from Sally Hansen, CoverGirl, Marc Jacobs and Gucci.
Core market shares also improved in Germany and the UK, fuelled by strong performances from Hugo Boss and Marc Jacobs.
More success came out of the colour cosmetics category, despite pressures worldwide, with some improvement seen for Rimmel in the European market and stabilising its mass colour cosmetics market share in the US.
Meanwhile, to grab a slice of the e-commerce pie, Coty has invested in its digital platforms and executive teams.
Last month, the group appointed Jean-Denis Mariani, formerly from Guerlain, to head up the newly created role of Chief Digital Officer and hired Isabelle Bonfatni to head up Coty’s luxury division as Chief Commercial Officer.
In response to its efforts, the group reported double-to-triple-digit e-commerce growth with sales doubling online 13% overall.
“Our first quarter results are a testament that a stronger, more focused and more flexible Coty, is emerging in the middle of the Covid-19 pandemic and better prepared to face any future market disruptions,” said Coty’s CEO Sue Y Nabi.
“Impressively, the organisation has continued to adapt to the new normal, executing on our financial and operational priorities, including profit and cash flow protection, strong innovation performance, e-commerce momentum, and strengthened positioning in core markets.”
Nabi, who joined the beauty owner in July this year, also said the group has been “diligent” in its cost control initiatives as it negotiates through the pandemic.
“After several months in the CEO role, I am as convinced as ever that we’ve put in place the right foundations to unleash Coty’s huge potential.
“Coty is now ready to grow in all core regions, categories and price positions across the market.”