Coty has reported a double digit sales jump in Q2 2023.
Sales increased by 13% to US$1.7bn, while operating income was up 19% to $236.7m.
This was largely driven by a robust quarter for its Prestige Beauty division, which saw revenues leap by 17% to $1.2bn.
Net income fell to $177.6m from $235m, however, which was impacted by the 3.6% sale of its stake in Wella.
Coty currently retains a 22.3% stake in the hair care company, valued at around $900m, which it intends to fully divest by 2025.
Despite this, second quarter sales were bolstered by strong demand for the Kylie Cosmetics owner’s Prestige fragrances.
Coty CEO Sue Nabi said this has been fueled by consumers seeking “concentrated, longer lasting and more sophisticated scents”.
The category’s growth was also primarily led by sales of the Burberry Goddess edp.
The success of Goddess has also raised sales for Burberry Hero and Her, Nabi added, which drove a 60% increase in year-on-year sales for the fashion house's fragrance arm.
Boss Bottled Elixir, Gucci Flora Gorgeous Magnolia, and additions to the Chloé Atelier des Fleurs collection, also supported the category.
Coty has been doubling down on fragrances in 2024, and recently extended fragrance licence agreements with Dutch fashion label Mexx and German underwear brand Bruno Banani.
“While we had expected Burberry Goddess to be a major blockbuster, the launch results are exceeding all our expectations and setting new records, fueled by a winning juice and disruptive market activations across all touchpoints,” said Nabi.
“Burberry Goddess is the biggest launch in Coty's history, becoming the number one fragrance launch in many markets and resonating with consumers across all regions.”
Cover Girl, Rimmel and Sally Hansen were named as Coty’s leading cosmetics brands during Q2, which the business said are continuing to gain significant market share.
Nabi said Cover Girl in particular benefited from an influencer marketing campaign for its Simply Ageless Skin Perfector foundation.
Coty intends to significantly accelerate its influencer marketing strategy during the second half of the year, according to Nabi.
“We are actively step changing our social media reach in order to drive our brands and build stronger community engagement,” she added.
Consumer Beauty, meanwhile, saw revenue increase by 7% to $605m.
The category benefited from the diversification of its consumer beauty portfolio, said Nabi.
“For colour cosmetics, lifestyle fragrances and skin and body care, our presence across multiple mass beauty categories is allowing us to capitalise on the tailwinds of both mass fragrance and body care,” she added.
Geographically, EMEA revenues saw the largest sales increases in Q2, up by 16% to $825.7m.
This was followed by the American market, which reported net revenues of $687.9m.
In Asia, revenues increased by 15% to $214m, which was bolstered by strong Prestige Beauty sales.
Prestige sales in China, whose sluggish recovery post Covid has impacted a number of luxury beauty businesses including Estée Lauder, also saw double digit growth.
Consumer Beauty sales in the country were lower, which Nabi said was the result of retailers continuing to work down inventory.
“All together, we are continuing to deliver on our balanced growth agenda, with LFL growth in both Prestige and Consumer Beauty, in each of our regions, in each of our categories of fragrances, cosmetics, skincare and bodycare, and across volumes, price and mix,” added Nabi.
