Bigger rival Estee Lauder EL.N also beat fourth-quarter results, but forecast full-year sales and profit below estimates last week due to a larger exposure to China, where recent COVID-19 lockdowns hit traffic at retailers. Lipstick and foundations are flying out of shelves with higher-income consumers indulging in smaller luxuries as decades-high inflation renders their plans for bigger purchases unattainable- a phenomenon known as the "lipstick effect". Coty has also been accelerating marketing investments such as livestreaming and promotions on social media sites such as TikTok, which play a big part in influencing young consumers' shopping decisions.