By Sam Boughedda
Investing.com -- Coty Inc (NYSE:COTY) shares rose Tuesday after the company reported its second-quarter earnings, beating analyst earnings expectations.
Shares of the beauty company rose more than 5% at the open, hitting a high of $9.03.
The company reported earnings per share of $0.17, beating consensus expectations of $0.11. However, revenue was below analyst forecasts of $1.6 billion at $1.58 billion.
Coty said it experienced strong sales and "sell-out momentum" in its first half, fueled by U.S., China and travel retail growth. In addition, its consumer beauty division experienced accelerated growth and gained market share.
"During the quarter, we continued to execute on our strategic growth pillars, allowing us to deliver sales, profit, and leverage results inline or ahead of guidance for the sixth consecutive quarter," stated Sue Nabi, Coty's CEO.
"Strong topline growth combined with gross margin expansion and strong cost execution are generating both profit growth and re-investment in the business in the most promising opportunities. This combination has contributed to sequentially improving sell-out trends in Q2, which sets the stage for accelerating sales growth in the second half."
Coty said it is confident that fiscal 2022 like-for-like sales will be at the upper end of its guidance range of low-to-mid teens percentage growth. The company raised its fiscal 2022 adjusted EPS guidance to between $0.22 and $0.26, up from the previous range of $0.20 to $0.24.
After the earnings release, in a call with analysts, Coty's chief financial officer, Laurent Mercier, said the company will be withdrawing from its Brazilian unit's planned initial public offering due to unfavorable financial market conditions in the country.