Coty Inc has outperformed market predictions and achieved higher quarterly revenue, thanks to its strong online sales. As the COVID-19 pandemic continues to keep consumers at home, they have increasingly turned to purchasing Coty’s beauty products through e-commerce channels. This surge in online sales has resulted in a 5% rise in the company’s shares during premarket trading.

Similar to other cosmetics companies, Coty experienced a decline in sales when lockdown measures were imposed earlier this year. However, in recent months, there has been a recovery in sales as online orders spiked and demand for skincare products increased. This recovery has helped compensate for the decrease in foot traffic to brick-and-mortar stores.

Recognizing the potential of the e-commerce boom, Coty has made substantial investments in its digital platform. The company has also launched new websites in Australia and Europe to expand its online presence.

According to Sue Nabi, Coty’s CEO, e-commerce sales have witnessed significant growth across most markets, with the proportion of sales attributed to e-commerce doubling to 13%. This impressive performance has led to a rise in net income for the company, which reached $221.4 million, or 24 cents per share, in the first quarter ending on September 30th, compared to $52.3 million, or 7 cents per share, for the same period last year.

After adjusting for certain factors, Coty earned a profit of $83.6 million, or 11 cents per share, in the first quarter, compared to $50.5 million, or 7 cents per share, in the previous year. Although net revenue declined by approximately 13% to $1.69 billion, it still exceeded analysts’ estimates of $1.08 billion.

Coty’s remarkable performance amidst challenging market conditions highlights the significance of establishing a strong online presence in the beauty industry. As more consumers rely on e-commerce for their shopping needs, companies that adapt and invest in digital platforms are better equipped for success. By placing emphasis on online sales and expanding its e-commerce capabilities, Coty has not only withstood the difficulties but has also surpassed expectations, demonstrating its ability to adapt to evolving market dynamics.

For more information on the rise of e-commerce in the beauty industry, read:

https://www.voguebusiness.com/beauty/makeup-sale-ecommerce-beauty-tech-vogue-business-index

To learn about the impact of COVID-19 on the cosmetics industry, visit:

https://www.cosmeticsdesign-europe.com/Article/2020/06/29/COVID-19-Cosmetics-manufacturing-retail-and-supply-chains