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By
Reuters
Published
Aug 13, 2015
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Coty's sales, profit beat as demand rises for cosmetics

By
Reuters
Published
Aug 13, 2015

Coty reported higher than expected quarterly sales and profit as demand rose for its Sally Hansen nail products and Rimmel cosmetics, and the company announced a $700 million share buyback program.




Coty, which also makes perfumes for brands such as Calvin Klein, Marc Jacobs and philosophy, raised its annual savings target by $70 million to $270 million by 2017.

The company said on Thursday that sales in its cosmetics business rose 13% in the fourth quarter. The unit contributed 42% to the company's total revenue, overtaking fragrances as its biggest business.

Coty has been trying to expand its products portfolio to overcome weakness in its perfumes business. The company said last month it would buy 43 brands from Procter & Gamble, including Wella and Clairol hair treatment products, for about $12.5 billion.

Sales in Coty's fragrance business fell 10% in the quarter ended June 30.

Coty reported net income of $21 million, compared with a loss of $20.1 million a year earlier. Revenue fell 2.1% to $1.02 billion.

 

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