1. Homepage
  2. Equities
  3. France
  4. Euronext Paris
  5. Hermès International
  6. News
  7. Summary
    RMS   FR0000052292


Real-time Euronext Paris  -  11:35 2022-06-24 am EDT
1067.50 EUR   +3.14%
06/21GLOBAL MARKETS LIVE : Hermes, Tesla, Apple, Intel, Visa...
06/20HERMÈS INTERNATIONAL : Share buyback program
06/20HERMÈS INTERNATIONAL : Share buyback program
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Coty raises annual profit outlook on resilient luxury demand

05/09/2022 | 08:12am EDT
FILE PHOTO: Gucci fragrances, owned by Coty Inc., are seen for sale in Manhattan, New York City

May 9 (Reuters) - Coty Inc raised its full-year profit forecast on Monday following resilient demand for its high-end fragrances and skincare products in the United States and Europe at a time when inflation has soared to multi-year highs in most countries.

Demand for luxury goods has held up as higher prices of everyday essentials have not affected the spending power of the affluent, updates from cosmetics group L'Oreal and Birkin bag maker Hermes have shown in recent days.

Revenue at Coty's prestige division, which houses cosmetics and fragrances from the Hugo Boss, Gucci and Burberry brands, rose 21% to $726.4 million for the third quarter ended March 31.

"(Coty's) prestige brands are seeing phenomenal growth, which means that consumer confidence to buy our brands is intact," Chief Executive Officer Sue Nabi told Reuters.

Customers unable to afford products from its prestige segment could trade down to the consumer beauty unit that sells lower-priced items, Nabi said.

However, Coty's shares fell as much as 8% to $6.68 amid broader market declines.

"While the market may be preoccupied with macro factors today, we believe COTY's better-than-expected results ... should be taken positively on a stand-alone basis," Deutsche Bank analysts said.

The cosmetics maker, which has also raised prices to combat higher costs, saw its third-quarter gross margin increase to 64.3%. Adjusted per-share profit was 3 cents, beating estimates of 1 cent, according to Refinitiv IBES data.

Coty increased its fiscal 2022 adjusted per-share earnings forecast to between 23 cents and 27 cents, from its previous outlook of 22 cents to 26 cents.

The implied forecast for the fourth quarter, however, is of a per-share loss between 1 cent and 5 cents, according to Reuters calculations, as Coty deals with the impact of higher raw material costs, the Ukraine conflict and COVID-19 curbs in China. (Reporting by Praveen Paramasivam and Ananya Mariam Rajesh in Bengaluru; Editing by Shounak Dasgupta)

© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
BURBERRY GROUP PLC 3.58% 1691.5 Delayed Quote.-6.93%
COTY INC. 7.33% 8.05 Delayed Quote.-23.33%
HERMÈS INTERNATIONAL 3.14% 1067.5 Real-time Quote.-30.50%
HUGO BOSS AG 0.94% 49.16 Delayed Quote.-8.11%
L'ORÉAL 4.18% 336.85 Real-time Quote.-19.21%
06/21GLOBAL MARKETS LIVE : Hermes, Tesla, Apple, Intel, Visa...
06/20HERMÈS INTERNATIONAL : Share buyback program
06/20HERMÈS INTERNATIONAL : Share buyback program
06/20HERMÈS INTERNATIONAL : Share buyback
06/14HERMES : Goldman Sachs reiterates its Sell rating
06/07WE NEED TO TALK ABOUT GUCCI : Kering sets plan to boost brand in China
06/07HERMES : UBS remains Neutral
05/31HERMÈS INTERNATIONAL : Monthly statement on outstanding equity shares and voting rights
05/30European shares rise as China growth hopes boost luxury, tech stocks
05/24Agnelli's Exor appoints Hermes CEO as board member, separates CEO and chairman roles
More news
Analyst Recommendations on HERMÈS INTERNATIONAL
More recommendations
Sales 2022 10 510 M 11 087 M 11 087 M
Net income 2022 2 740 M 2 891 M 2 891 M
Net cash 2022 7 641 M 8 060 M 8 060 M
P/E ratio 2022 40,8x
Yield 2022 0,82%
Capitalization 112 B 118 B 118 B
EV / Sales 2022 9,90x
EV / Sales 2023 8,84x
Nbr of Employees 17 189
Free-Float 32,1%
Duration : Period :
Hermès International Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends HERMÈS INTERNATIONAL
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 19
Last Close Price 1 067,50 €
Average target price 1 309,75 €
Spread / Average Target 22,7%
EPS Revisions
Managers and Directors
Axel Dumas Co-Executive Chairman-Management Board
Henri-Louis Bauer Co-Executive Chairman-Management Board
Éric Marie Joseph du Halgouët Executive Vice President-Finance
Éric de Seynes Chairman-Supervisory Board
Nicolas Faure Operations Director
Sector and Competitors