×
160
Fashion Jobs
NEEJ
Business Development Manager
Permanent · MUMBAI
LIFESTYLE BRANDS
Regional Sales Manager, Peter England - Bangalore
Permanent · BENGALURU
KITEX GARMENTS LIMITED
General Manager - Merchandiser
Permanent · ALUVA
ZODIAC CLOTHING CO LTD
Sourcing Officer (Fabric & Garment)
Permanent · MUMBAI
LIFESTYLE BRANDS
Head of Marketing, Louis Philippe - Bangalore
Permanent · BENGALURU
LIFESTYLE BRANDS
Group Manager - E-Commerce Product (B2B)
Permanent · BENGALURU
LIFESTYLE BRANDS
Manager - Product, Louis Philippe
Permanent · BENGALURU
PANTALOONS HO
Senior Executive - Marketing
Permanent · PUNE
LIFESTYLE BRANDS
Manager - Trade Channel, Finance
Permanent · BENGALURU
LIFESTYLE BRANDS
Executive -Key Accounts (Mis),lp
Permanent · BENGALURU
LIFESTYLE BRANDS
Senior Executive - Garment Technician (ww &Amp; Kids), Pdqa
Permanent · BENGALURU
LIFESTYLE BRANDS
Sales Executive - Kannur &Amp; Kasargod
Permanent · BENGALURU
HIGH FASHION GARMENT COMPANY
Manager Humanr Resource (Male) From Mumbai Only
Permanent · MUMBAI
RAJ KHATRI FILMS PVT LTD
Digital Marketing Executive
Permanent · MUMBAI
ANANDGUPTA COUTURE
Social Media Marketing & Fashion Design Assistant
Permanent · MUMBAI
DESIGNR
Sales Officer
Permanent · NEW DELHI
NETE.IN
CRM & Logistics Executive
Permanent · MUMBAI
FABINDIA OVERSEAS PVT. LTD.
Retail Planner
Permanent · NEW DELHI
SELECTIVE GLOBAL SEARCH PVT. LTD.
Business Development
Permanent · NEW DELHI
AJIO - RELIANCE INDUSTRIES LTD
Sales Officer
Permanent · KARIMNAGAR
AJIO - RELIANCE INDUSTRIES LTD
Sales Officer
Permanent · MIRYALAGUDA
AJIO - RELIANCE INDUSTRIES LTD
Sales Officer
Permanent · KOTHAGUDEM

Coty's revenue misses on weak demand for perfumes, cosmetics

By
Reuters
Published
today Nov 9, 2016
Reading time
access_time 2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Beauty products maker Coty Inc reported reported lower-than-expected quarterly revenue, due to a slump in demand for its fragrances and color cosmetics, and said the slowdown in revenue would continue in the current quarter.

The company's stock fell as much as 15.6 percent to $18.48 on Wednesday, a day after the U.S election, its lowest level since January last year.



Coty



On a call with analysts, executives attributed the continuing sales weakness to distractions caused by the integration of Procter & Gamble Co's specialty beauty business, which Coty acquired for $12.5 billion.

"People are not necessarily fully focused on the business ... they are in transition ... helping out on the integration of the business so those have caused distractions and caused us to lose momentum in the business," Coty Chairman Bart Becht said on the call.

The company also said that challenges in the consumer beauty business and the previously-announced sale of 6-8 percent of its product portfolio would hurt second-quarter sales.

Becht said the results of the recently concluded U.S. presidential election do not affect the company's plans.

SALES LOSE SHINE

Fragrance sales fell 9 percent on a like-for-like basis, while color cosmetics fell 6 percent in the first quarter ended Sept. 30. These two segments are its biggest contributors to revenue.

"This period of integration for Coty has been met with less than stellar underlying performance and lack of clarity has created anxiety in the stock," Piper Jaffray analyst Stephanie Wissink said in a note.

Coty has inked multiple deals to transform itself into a global beauty products giant, as it reduces its dependence on its struggling fragrance business.

After buying P&G's specialty beauty business, the company acquired ghd, a high-end hairstyling appliance brand, from private equity firm Lion Capital LLP for about $522 million.

Coty posted no profit during the first quarter ended Sept. 30. In the year-earlier quarter, the company reported a net income of $125.7 million, or 34 cents per share.

Net revenue fell to $1.08 billion from $1.11 billion.

Analysts on average had expected revenue of $1.14 billion, according to Thomson Reuters I/B/E/S.

Shares of Coty, which owns cosmetics brands like COVERGIRL and Rimmel, were down 13.2 percent in early trading. The stock has fallen as much as 23 percent in the last 12 months.
 

© Thomson Reuters 2019 All rights reserved.