Coty (COTY) 4th Annual Evercore ISI Consumer & Retail Conference summary

Global beauty market trends

• Beauty demand remains strong worldwide, with prestige beauty outpacing mass beauty and both segments showing growth, especially in fragrances and skincare.

• Prestige fragrances grew ~10% in H1 FY24, accelerating to 15% in Q3; U.S. prestige fragrance usage and buying habits increased, with 5 million more buyers and a 6% year-over-year rise in 2023.

• 49% of U.S. consumers and 61% of Gen Z use fragrances 3+ times per week, both up from 2022.

• Prestige fragrance market value in the U.S. and Europe grew 98% and units 44% from 3Q19 to 3Q24.

• April trends remained consistent with recent quarters, reinforcing category strength.

Structural shifts in prestige fragrance

• Prestige fragrance is seen as affordable luxury and well-being support, with heavy usage rising, especially among Gen Z.

• U.S. prestige fragrance buyers increased by 5 million in 2023, with Gen Z, men, and Hispanic consumers leading.

• U.S. prestige fragrance market nearly doubled since 2019; Europe up 35% over the same period.

• U.S. and China have significant room for further fragrance penetration.

• Lifestyle scenting and new consumer segments are key growth drivers.

Product innovation and franchise strategy

• Consistent blockbuster fragrance launches, including Marc Jacobs Perfect, Gucci Flora, Burberry Hero, and Burberry Goddess.

• Recent launches Marc Jacobs Daisy Wild and Kylie Cosmic ranked #2 and #3 in U.S. fragrance innovation.

• Innovation is driven by internal scent creation, consumer insights, and franchise extension strategies.

• Franchise growth achieved through new formats and concentration levels, extending product life cycles.

• Blockbuster franchises like Burberry Goddess expected to expand further in FY25 and beyond.