Coty Inc. has lifted its full-year revenue forecast because the fragrance effect shows no sign of abating, concurrently it revealed it has canceled the sale of a part of its Wella stake.

Buoyed by sales of the likes of Burberry Goddess, Burberry Her and Gucci Flora, the sweetness company now expects full-year like-for-like revenue growth of between 9 percent and 11 percent, ahead of its recently raised guidance of 8 percent to 10 percent. It continues to focus on adjusted earnings per share of between 44 cents and 47 cents for the 12 months as a complete, implying growth of as much as 25 percent.

“This demonstrates the strength of our strategy and the strength of our portfolio,” said chief executive officer Sue Nabi of the outcomes during an interview with WWD.

This got here as Coty and its counterparties revealed they’ve decided to finish the partial sale of its Wella stake, “given misalignment on final deal terms.”

In July, Coty announced that it expected to sell a 3.6 percent stake, the equivalent of $150 million, within the skilled hair care brand to investment firm IGF Wealth Management, with the money proceeds for use to pay down debt.

At the same time as it ended that sale of a partial stake, Coty reiterated its commitment to divest its remaining 25.9 percent share of Wella by 2025. 

For the primary quarter of the fiscal 12 months ended Sept. 30, net revenue was $1.64 billion, up 18 percent year-over-year. Analysts polled by Factset had forecast $1.58 billion.

Prestige revenues grew by 23 percent, boosted by momentum in prestige fragrance demand. Prestige fragrance grew by 25 percent, with three franchises — Burberry Goddess, Gucci Flora, and Burberry Her — reaching the highest 10 female fragrances within the U.S. for the primary time in the corporate’s history. Burberry Goddess, meanwhile, is doubling in sales, in response to Nabi. Coty also plans to relaunch Burberry Beauty with a Selfridges boutique.

“The corporate’s leading seven [fragrance] brands are growing within the high 20s percentages on a like-for-like basis,” she continued. “So it’s not one brand. It’s not two brands. It’s not three brands. It’s not 4 brands. It’s seven brands growing above the 20 percent threshold in our fragrance portfolio.” 

Coty’s consumer beauty revenues grew by 10 percent in the primary quarter, with strength in its color cosmetics, mass fragrances, and mass skin and body care sales. It also highlighted mass skincare brands Monange and Paixão as performing well in Brazil.

While speculation continues that Kim Kardashian and Kylie Jenner are each in talks with Coty to purchase back their respective brands, Nabi said they’re each clearly a part of the portfolio and playing their role.

For Kylie Cosmetics, she said: “We’re expanding the presence of the brand in numerous categories. We imagine that is the proper strategy since there may be a whole lot of momentum and goodwill behind the brand.”

The group paid $600 million for a 51 percent stake in Kylie Cosmetics in 2020 and bought a 20 percent stake in Kardashian’s beauty business, then called KKW Beauty, for $200 million in 2021, implying that the brand was valued at $1 billion on the time.

Geographically, all regions generated double-digit percentage revenue growth within the quarter.  Europe, Middle East and Africa sales expanded 20 percent, Americas sales rose 17 percent, and Asia Pacific sales grew 16 percent. In China, sell-out growth in Coty’s Prestige business was well ahead of the market, growing by double-digits percentage in mainland China and triple-digits percentage in Hainan. 

Coty reported a net lack of $1.7 million, compared with net income of $125.3 million within the prior 12 months, because of the next profit within the prior 12 months from a change in Wella’s fair value. Adjusted EPS was 9 cents, below Wall Street forecasts for 17 cents.