Coty's stock jumps premarket after company raises fiscal 2024 guidance to reflect strength in prestige fragrances

Coty Inc.'s stock (COTY) jumped 4.6% in premarket trade Wednesday, after the beauty, cosmetics and fragrance giant raised guidance for fiscal 2024, boosted by strength in its prestige fragrance business. "Since providing its guidance on its FY23 earnings call four weeks ago, Coty has seen strong momentum in beauty demand across its key markets and categories, particularly in prestige fragrances," the company said in a statement. It highlighted the recent launch of the company's Burberry Goddess fragrance, which it said is setting records. Coty is now expecting first-half like-for-like (LFL) sales to rise 10% to 12%, up from prior guidance of up 8% to 10%. For the full year, it now expects LFL sales growth of 8% to 10%, up from a prior range of 6% to 8%. "The company remains committed to delivering a best-in-class medium term growth algorithm, including a mid-20s % EPS CAGR based on profit expansion, lower interest expense and in the medium term managing share count towards 800 million; active deleveraging; and targeted capital returns," said the statement. The stock has gained 34% in the year to date, while the S&P 500 has gained 15.7%.

-Ciara Linnane

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09-20-23 0656ET

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