DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5

Coty Posts Wider-Than-Expected Loss As Virus-Wary Shoppers Stay Home

By Dayeeta Das
Share this article
Coty Posts Wider-Than-Expected Loss As Virus-Wary Shoppers Stay Home

Cosmetics maker Coty Inc posted a bigger-than-expected quarterly loss and a 56% slump in sales, as demand for its beauty products took a hit from closures of stores and parlours during coronavirus lockdowns.

Shares of Coty, a majority of which is owned by German conglomerate JAB Holding Co, were down about 6% in premarket trade on Thursday and declined nearly 66% this year.

The company and its peers are also battling the closure of many channels of sales, including duty-free shops at airports, as well as contending with work-from-home customers seeking more skincare and haircare products than makeup items.

Sales at Coty's consumer beauty segment, which houses brands such as Cover Girl and Max Factor, plunged about 55%.

Improvement In Overall Business

Coty, however, said it had seen an improvement in its overall business in the last two months and expects a return to profit in the current quarter.

ADVERTISEMENT

Net loss attributable to Coty narrowed to $772.8 million, or $1.01 per share, in the fourth quarter ended 30 June, from about $2.8 billion, or $3.72 per share, last year.

Excluding items, Coty lost 51 cents per share, while analysts on average were projecting a loss of 12 cents per share, according to IBES data from Refinitiv.

Net revenue fell on a reported basis to $922.1 million, missing analysts' estimates of $1.34 billion.

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

Get the week's top grocery retail news

The most important stories from European grocery retail direct to your inbox every Thursday

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our terms & conditions and privacy policy. You can unsubscribe at any time.