(Reuters) – Cosmetics maker Coty (NYSE:) Inc raised its full-year revenue outlook on resilient demand for its high-end fragrances and skincare merchandise even at a time inflation in most international locations has soared to multi-year highs.

Demand for luxurious items has held up as increased costs of on a regular basis necessities haven’t affected the spending energy of the prosperous, updates from cosmetics group L’Oreal and Birkin bag maker Hermes have proven in current days.

Income at Coty’s status division, that homes cosmetics and fragrances from the Hugo Boss, Gucci and Burberry manufacturers, rose 21% to $726.4 million for the third quarter ended March 31.

“(Coty’s) status manufacturers are seeing phenomenal progress, which implies that client confidence to purchase our manufacturers is unbroken,” Chief Govt Officer Sue Nabi instructed Reuters.

The corporate’s general income for the third quarter rose 15% to $1.19 billion, beating estimates of $1.15 billion, in accordance with Refinitiv IBES knowledge.

The maker of CoverGirl cosmetics additionally raised its adjusted earnings per share forecast for fiscal 2022 to between 23 cents and 27 cents from a previous vary of twenty-two cents to 26 cents.

This is available in distinction to rival Estee Lauder (NYSE:)’s transfer to decrease its earnings forecast partly as a consequence of misplaced gross sales from pandemic-related lockdowns in China, which account for 36% of its general enterprise.

Coty introduced in solely 4% of its gross sales from China final 12 months, though the cosmetics group presently invests closely in rising its manufacturers there and considers the nation a “high precedence”.

The implied forecast for Coty’s fourth quarter is of a per-share loss between 1 cent and 5 cents, in accordance with Reuters calculations, as the corporate offers with the influence of uncooked materials inflation, the Ukraine battle and COVID-19 curbs in China.

Analysts had anticipated a fourth-quarter revenue of 1 cent per share.