Beauty companies continue to expand into a multi-pronged digital strategy that encompasses e-commerce, m-commerce, as well as digital and social media.
Coty (COTY) reported a fall in its gross margin in fiscal 3Q16. Its reported gross margin came in at 61.2% in fiscal 3Q16 compared to 62.3% in fiscal 3Q15.
Beauty companies’ revenues for 4Q15 conveyed mixed signals to investors. Although Procter & Gamble and Avon started the earnings season on a disappointing note with lower sales, Estée Lauder and Coty beat consensus Wall Street estimates.
Coty (COTY) markets its beauty and cosmetic products in more than 130 countries and territories. Coty derives its revenue from three geographical regions.
Let’s discuss Coty’s margins. It reported a slight improvement in the adjusted gross margin in fiscal 1Q16. This adjusted gross margin rose 70 basis points.
A limited distribution strategy led to Coty’s high reliance on specific channels or departments for specific products. Coty faces stiff competition from established luxury brands and local regional brands.
