Global beauty company manufacturing skin, fragrance, hair brands and cosmetics Coty Inc. (COTY) has bounced to growth in its third quarter results after posting net losses in 2020 due to the pandemic which took control for the better part of the year.
For the third quarter ended March 31, sales at the prestige unit that produces Gucci lipstick philosophy skin care increased to by 6.5% to $600.6 million making it the first time the company is posting sales increase over a year.
For the whole of last year Coty’s sales kept on decreasing and plunging further since movement restrictions got many users of their products stuck at home hence having to need to apply beauty products.
Nonetheless, in Europe where there has been increased movement restrictions, sale in the continent tumbled by 7.8% in the third quarter whereas, in greater Asia Pacific which includes China sales increased by around 28%.
Coty’s beauty business includes notable brands such as Gucci foundations and Burberry perfumes. The company says that it’s aiming to penetrate China further with its luxury beauty products.
Through the company’s Chief Executive Officer Sue Nabi, Coty is expecting to replicate the China success in the United States.
“We are starting to see some improvement in the UK. Seeing lockdowns being lifted will hopefully help us build in the fourth quarter. In the U.S., part of the business is still a little bit under pressure due to the mass business, but Prestige is growing,” added the CEO.
