(AOF) – Coty, a cosmetics and perfumery group, reported quarterly sales above expectations, supported by demand. In the fourth fiscal quarter, it came in at $1.17 billion, versus a consensus of $1.15 billion. Excluding exceptional items, earnings per share were -1 cent, in line with analysts’ forecast. Americans are turning to cosmetics and fragrances to beat the inflation blues, a trend called the “lipstick effect” that could sustain the beauty market’s post-pandemic rebound.
The phenomenon, of consumers buying more beauty products than big-ticket items during an economic downturn, is expected to cushion the blow from the shutdowns of major beauty markets in China, analysts said.
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The axis of sustainable development now a priority
This is one of the strongest expectations of customers aged 25 to 40, who represent a growing proportion of sales. This also represents an advantage in recruitment for major luxury brands. LVMH, Fendi, Imperial College London and Central Saint Martins UAL have teamed up on a two-year research project to develop new biotextiles for fur in the sector. Recently the manifesto for a regenerative fashion, developed in partnership with the Alliance for the circular bioeconomy (CBA) was signed by Burberry, Chloé, Stella McCartney, or Armani. As for Kering, it has developed a tool that measures its CO2 emissions, water consumption and land use throughout the supply chain.