Coty Inc (NYSE:COTY) shares added more than 5% after the beauty company raised its outlook on strong demand, specifically for its high-end prestige fragrances.
It now expects first-half sales growth of 10% to 12%, above its previous guidance of 8% to 10% growth.
For fiscal 2024, it expects sales growth of 8% to 10%, up from its prior guidance at the top end of its medium-term target range of 6% to 8%.
Coty, which makes perfumes for brands like Burberry and Gucci, said the recent launch of the Burberry Goddess fragrance has driven optimism around its outlook.
"The success of Burberry Goddess across key markets confirms that Coty is the go-to destination to create top quality winning fragrances and execute unique and disruptive campaigns," Coty CEO Sue Nabi said in a statement.
"Having spent the past three years strengthening Coty’s fundamentals and elevating Coty’s organizational capabilities across our categories, we enter the next phase of growth with best-in-class innovation and marketing power."
Coty stock had gained 5.5% at US$12.10 on Wednesday morning.
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