By Sabela Ojea

Coty Inc. said Wednesday that it is upgrading its sales guidance for the first quarter of the year on current long-term growth expectations for its skincare business.

The beauty company said that it expects to benefit from stronger levels of demand for beauty products, and that it is doubling its skincare revenue guidance to between $500 million and $600 million for the next three years ending June 30, 2025. These sales are also anticipated to accelerate further in fiscal 2026 and beyond, the company said.
Coty said like-for-like sales for the first quarter are now expected to grow in the range of 8% to 9%, up from the previous guidance of 6% to 8%.
The New York-based company’s skincare brand Lancaster delivered double-digit growth in the fourth quarter and in fiscal 2022 as a whole, and the group’s consumer beauty revenue–which comprises color cosmetics, mass fragrances, body products, and skincare–rose 3% to $505.5 million in the fourth quarter.
Coty, whose consumer-beauty revenue represents 43% of the company’s total sales, left its remaining medium-term growth targets unchanged.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix