UPDATE 3-Coty profit beats on demand for brands aimed at younger consumers

From Reuters - November 9, 2017

(Reuters) - Beauty products maker Coty Inc (COTY.N) on Thursday posted a quarterly profit that beat Wall Street estimates, selling more high-margin products like Younique makeup and ghd hair care merchandise that are popular with millennials.

Coty, to keep pace with rivals Estee Lauder (EL.N) and LVMHs (LVMH.PA) Sephora, has added brands that appeal to younger customers. Younique has beauty consultants who sell products only through social media and ghd offers haircare and styling items.

This past year, Coty became the third-largest beauty products maker after buying more than 40 brands, including luxury licenses Hugo Boss and Gucci, from Procter & Gamble (PG.N).

Cotys shares rose 9 percent to $16.10 before the bell.

In the latest first quarter, Cotys luxury beauty unit sales rose 4 percent and consumer beauty, its biggest unit, saw a 2 percent increase.

Cotys adjusted gross margins rose 2.8 percent, gaining from the acquisition of higher-margin businesses, and integrating the supply-chain of the new units.


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