NYSE$COTY
Coty Inc · Q3 2022 earnings
Q3 2022 earnings · · Investor relations
Briefing
Sales growth exceeded expectations, driven by strong performance in both divisions and fueled by the U.S., Europe, and Travel Retail, accompanied by continuous gross margin expansion and deleveraging progress.
Coty's Q3 2022 results showed strong sales growth, with a 15% increase in reported sales and 19% on an LFL basis. This growth was driven by both the Prestige and Consumer Beauty segments, with significant contributions from the U.S., Europe, and Travel Retail. The company also achieved gross margin expansion and continued progress on deleveraging.
- Net revenues increased 15% as reported and 19% on a LFL basis, driven by strong growth in both Prestige and Consumer Beauty.
- Reported operating income totaled $57.1 million.
- Adjusted EBITDA was $182.5 million with a margin of 15.4%.
- Adjusted EPS of $0.03, improved from $0.01 last year.
Headline financials
Revenue & EPS history
Coty · Revenue · Quarterly
$1.19B
Revenue by segment
Coty · $1.19B total across 2 segments · Q3 2022
- Prestige$726M+20.9%61.2%
- Consumer Beauty$460M+7.6%38.8%
Forward guidance
Coty expects FY22 LFL sales will be at the upper end of its guidance range of low-to-mid teens percentage growth. Coty continues to expect FY22 adjusted EBITDA of $900 million and raises its FY22 adjusted EPS guidance to $0.23-0.27.
Tailwinds
- Brand investments are driving attractive ROI and fueling strong topline growth.
- Strong revenues and sell-out momentum YTD.
- The company continues to expect FY22 adjusted EBITDA of $900 million.
- Coty raises its FY22 adjusted EPS guidance to $0.23-0.27.
- The Company continues to target leverage towards 4x exiting CY22 and approximately 2x exiting CY25.
Headwinds
- Expected impact in Q4 from Coty's decision to exit operations in Russia including local Travel Retail, which accounts for approximately 3% of total revenues.
- Near-term COVID lockdowns in China.
- The industry faces lockdowns in China.
- The industry faces the war in Ukraine.
- The industry faces inflationary headwinds, and global supply pressures.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q3 2022
+0.2%
Avg return
Earnings day
+0.1%
Avg return
5 days after
+1.8%
Avg return
30 days after
44%
23 / 52 earnings
Positive
+36.8%
Q2 2019
Best reaction
-25.8%
Q1 2019
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q3 2026 | +3.9% | -9.4% | -23.4% | |
| Q2 2026 | -14.5% | -19.7% | -24.8% | |
| Q1 2026 | -0.8% | -5.6% | -8.7% | |
| Q3 2025 | -11.6% | -3.1% | -2.9% | |
| Q2 2025 | -9.3% | -17.6% | -19.8% | |
| Q1 2025 | -3.8% | -2.4% | +0.9% | |
| Q4 2024 | +6.1% | +4.3% | -1.7% | |
| Q3 2024 | -4.3% | -3.7% | -12.8% | |
| Q2 2024 | -3.2% | -3.6% | +3.7% | |
| Q1 2024 | +1.8% | -0.6% | +18.4% | |
| Q4 2023 | +2.6% | +0.5% | +11.9% | |
| Q3 2023 | -3.7% | -7.3% | -2.6% | |
| Q2 2023 | -0.2% | +7.9% | +3.6% | |
| Q1 2023 | -5.2% | +11.2% | +14.9% | |
| Q4 2022 | +7.4% | +5.7% | -0.1% | |
| Q3 2022 | -13.3% | -9.6% | -1.1% | |
| Q2 2022 | +12.2% | +8.6% | -5.6% | |
| Q1 2022 | +16.4% | +16.4% | +10.5% | |
| Q4 2021 | +15.6% | +18.7% | -2.7% | |
| Q3 2021 | -10.9% | -13.4% | -14.9% | |
| Q2 2021 | -17.3% | -14.6% | +11.5% | |
| Q1 2021 | +33.2% | +38.6% | +132.0% | |
| Q4 2020 | -3.6% | -6.8% | -29.9% | |
| Q3 2020 | -16.7% | -36.7% | -0.8% | |
| Q2 2020 | +13.6% | +12.5% | -19.2% | |
| Q1 2020 | +13.4% | +8.4% | +3.6% | |
| Q4 2019 | +6.2% | +8.5% | +19.7% | |
| Q3 2019 | -5.6% | -4.2% | +10.4% | |
| Q2 2019 | +36.8% | +58.2% | +55.8% | |
| Q1 2019 | -25.8% | -22.6% | -32.9% | |
| Q4 2018 | -5.5% | -3.4% | +4.9% | |
| Q3 2018 | -8.8% | -11.0% | -12.6% | |
| Q2 2018 | +13.6% | +17.6% | +11.0% | |
| Q1 2018 | +10.5% | +14.8% | +20.5% | |
| Q4 2017 | -14.4% | -16.1% | -18.2% | |
| Q3 2017 | +9.9% | +7.5% | +5.1% | |
| Q2 2017 | -8.8% | -3.8% | -4.7% | |
| Q1 2017 | -15.3% | -16.7% | -12.5% | |
| Q4 2016 | -6.9% | -3.6% | -18.2% | |
| Q3 2016 | -12.2% | — | — | |
| Q2 2016 | +14.0% | — | — | |
| Q1 2016 | -4.8% | — | — | |
| Q4 2015 | +3.1% | — | — | |
| Q3 2015 | -1.4% | — | — | |
| Q2 2015 | +15.6% | — | — | |
| Q1 2015 | +6.6% | — | — | |
| Q4 2012 | -4.6% | — | — | |
| Q4 2014 | -4.6% | — | — | |
| Q3 2014 | +3.4% | — | — | |
| Q2 2014 | +3.4% | — | — | |
| Q1 2014 | -2.7% | — | — | |
| Q4 2013 | +0.8% | — | — | |
| Q3 2013 | — | — | — | |
| Q2 2013 | — | — | — | |
| Q1 2013 | — | — | — | |
| Q3 2012 | — | — | — | |
| Q2 2012 | — | — | — | |
| Q1 2012 | — | — | — | |
| Q4 2011 | — | — | — |
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