Feb 8 (Reuters) – CoverGirl parent Coty Inc (COTY.N) on Tuesday raised its profit expectations for the year, as the cosmetics major’s focus on high-margin skincare products cushions the effect of higher costs from supply chain disruptions and inflationary pressures.
Shares rose about 5% as investors looked past the hit to quarterly sales from COVID-19 curbs in some markets and cheered a rebound in demand for makeup in the United States from the reopening of offices and the return of social gatherings.
“We are selling more expensive products, more expensive categories, in regions of the world where there is high price elasticities. Think of China, think of skincare with Lancaster,” Chief Executive Officer Sue Nabi said in an interview.
Register now for FREE unlimited access to Reuters.com
New launches, including the Flora Gorgeous Gardenia by Gucci and Burberry Hero, powered sales higher in the United States, the company said.
The company’s raised full-year profit outlook follows a similar move by rival Estee Lauder Cos Inc (EL.N) last week on price hikes and customers venturing out more. read more </…….