Coty aims to double skincare sales by fiscal 2025
US beauty giant Coty has set out a target to double its skincare sales by fiscal year 2025, “with further acceleration in FY26 and beyond”.
CEO Sue Y. Nabi told investors the company is on track to increase skincare sales to between 500 million dollars and 600 million dollars in the coming three years.
“Coty’s skincare portfolio is one of the most exciting growth areas in our business,” Nabi said.
The company’s strategy will put a focus on its prestige brands, including Lancaster, Orveda, philosophy, Kylie Skin, and SKKN by Kim.
Nabi said the company has already begun its “skincare revolution” in Hainan and mainland China, where it's already seeing evidence that its “brands, formulations, and communication can win over consumers”.
In the near term, Coty said it’s seeing stronger beauty demand, leading it to raise its Q1 like-for-like sales growth outlook to between 8 percent and 9 percent from its previous outlook of between 6 percent and 8 percent, adjusting for the impact of its exit from the Russian market.
It said the improved outlook “is being fueled by both prestige and consumer beauty, and across Europe, the Americas, and global travel retail”.
It said the sales momentum “also underpins a stronger Q1 gross margin outlook, despite continued inflationary pressures”.