Today, beauty product company Coty (NYSE:COTY) is seeing a ton of investor interest pour in. Indeed, the 15% move in COTY stock signifies investors like what they see with this leading purveyor of popular cosmetics, fragrances and skincare products.
The range of brands and products sold within Coty’s portfolio is impressive. These include “the Alexander McQueen, Burberry, Bottega Veneta, Calvin Klein, Cavalli, Chloe, Davidoff, Escada, Gucci, Hugo Boss, Jil Sander, Joop!, Kylie Jenner, Lacoste, Lancaster, Marc Jacobs, Miu Miu, Nikos, philosophy, and Tiffany & Co. brands.” The company markets and sells its products via traditional brick-and-mortar channels, as well as via select online retailers.
Indeed, it appears investors are looking at Coty as a key pandemic reopening play. As offices reopen, nightlife resumes and folks want to put their “going out” face on, beauty plays such as COTY stock have come in high demand. Additionally, there are a range of catalysts from the company’s recent earnings release that has investors excited about this stock.
Let’s dive into what investors are looking at with Coty today.
COTY Stock Higher on Significant Earnings Beat
- Today, Coty reported earnings before the bell.
- The company reported revenue growth of nearly 90% on a year-over-year basis.
- Additionally, the breakdown on these sales were encouraging. Emerging markets saw triple-digit growth rate, with the Americas and Asia seeing growth rates around 70%, respectively.
- E-commerce growth of 34% was reported for fiscal year 2021. Investors are increasingly looking at e-commerce growth as a key driver of beauty stocks such as Coty moving forward.
- Forward guidance for FY2022 also came in higher than expected. The company expects strong EBITDA (earnings before interest, taxes, depreciation and amortization) margin expansion and same-store sales growth around 8% in the year to come.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.