Coty Inc said on Friday that it would explore a listing on the Paris Stock Exchange as the CoverGirl cosmetics maker looks to strengthen its presence in Europe and tap into new investors in the market.
Founded in Paris in 1904, Coty counts Europe as a substantial market, with net revenues from the EMEA region making up about 47% of the company's total sales in its most recent quarter.
Fragrances
Coty, also known for fragrances from the Hugo Boss, Gucci and Burberry brands, had in March maintained its annual profit forecast and projected core like-for-like (LFL) sales growth for the full year at the higher end of its prior guidance of 6-8%.
The company is set to report its fiscal third quarter earnings next week, following a dismal fiscal 2023 forecast from rival Estée Lauder Cos Inc earlier this week on slow recovery at duty-free and travel destinations, especially in Asia.
Raises Forecast
on 9 May, Coty Inc raised its annual profit forecast for the second time and beat quarterly revenue and earnings estimates, buoyed by the CoverGirl parent's price hikes and steady demand for its high-end and affordable cosmetics and fragrances.
Shares of Coty, which is planning for a dual listing in Paris, climbed about 2% in premarket trading.
The results reflect the recent trend of luxury shoppers indulging in lipsticks and fragrances even as they shun high-end purchases amid rising interest rates and product prices.
Read More: Coty Raises Profit Forecast On Resilient Demand, Price Hikes
News by Reuters, edited by Donna Ahern, Checkout. For more A-brand news, click here. Click subscribe to sign up for the Checkout print edition.
