Coty aims to double skincare sales by 2025 with focus on prestige brands
Coty Inc. announced on Thursday it plans to double skincare sales by full-year 2025, as the beauty giant homes in on skincare and its prestige brands portfolio.
The New York-based Coty said it plans to achieve skincare sales of $500 million to $600m over the next three years and hopes to accelerate growth in full-year 2026 and beyond. In doing so, the company will unveil new launches and expansion plans for its key prestige skincare brands including Lancaster, Orveda, philosophy, Kylie Skin and SKKN by Kim.
Upclose, Coty said it plans to upgrade its skincare science and technologies in five key areas: full-light protection, oxygen delivery, retinol vectorization, DNA repair, and bio-fermented blends, adding its research in these skincare areas "goes back several decades, with key patents extending for the next 5-10 years," according to a press release.
“Coty’s skincare portfolio is one of the most exciting growth areas in our business, with revenues on track to double to $500 million to $600 million by FY25. Our strategy is underpinned by world-recognized brands serving key white-space opportunities and consumer needs, 75-years of scientific innovation and leadership, superior patents and distinct intellectual property, and a large and growing team of skincare experts across the organization," said Sue Nabi, chief executive officer of Coty.
"We have begun our skincare revolution in Hainan and mainland China, where we are already seeing proof that our brands, formulations, and communication can win over consumers. At the same time, our research & development efforts are focused on the fastest growing consumer needs and health trends. All of this gives us confidence that we can capture significant opportunities in the $150 billion global skincare market.”
The company also reaffirmed its full-year 2025 forecast, reiterating like-for-like sales growth of 6-8%; 9-11% adjusted EBITDA growth, and low 20s EPS CAGR through FY25.
In the near term, Coty said it is seeing stronger beauty demand, leading the company to raise its first quarter full-year 2023 like-for-like sales growth outlook to 8-9%, from previous 6-8%, adjusting for the impact of the Russia exit.
Coty said the improved outlook is being fueled by both prestige and consumer beauty, and across Europe, the Americas, and global travel retail. The strong sales momentum also underpins a stronger Q1 gross margin outlook, despite continued inflationary pressures, Coty added.
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