Coty's quarterly sales miss due to supply-chain disruption
today Aug 21, 2018
Beauty products maker Coty Inc missed quarterly sales estimates on Tuesday, hurt by short-term supply chain disruptions that hit consumer beauty products sales, its biggest business.
The strike affected sales of brands such as Rimmel, Max Factor and CoverGirl. Chief Executive Camillo Pane said the peak of the impact will be in the first quarter of 2019.
Shares of the company fell 4.8 percent to $11.80 in low volume premarket trading, with Coty also announcing that its Chief Financial Officer Patrice de Talhouët was leaving. Ayesha Zafar, a senior vice president, would serve as interim CFO.
Supply-chain disruption along with the company’s previously announced plan to streamline its portfolios is expected to lead to a “low-teens” decline in its adjusted operating income in the first quarter of 2019.
Net loss attributable to the company narrowed to $181.3 million, or 24 cents per share, in the quarter ended June 30 from $304.8 million, or 41 cents per share, a year earlier. Net revenue rose nearly 3 percent to $2.30 billion, but missed the analyst average estimate of $2.32 billion.
Excluding one-time items, Coty earned 14 cents per share, marginally beating the average analyst estimate of 13 cents, according to Thomson Reuters I/B/E/S.
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