New York, 21 August (Kiran News) – Coty, the company behind well-known brands like Max Factor, has reported an unexpected loss in its latest quarterly results as retailers acted with caution and reduced their orders. The company’s shares plunged 20% in premarket trading on Thursday after the news was released.
According to Coty, like-for-like sales fell by 9% compared to the previous year. The company expects these sales to continue to decline in both the current and following quarter before turning positive in the second half of the fiscal year.
In its fiscal fourth quarter, Coty reported a net loss attributable to shareholders of $72.1 million, with an adjusted decline of $0.05 per share. This was far below analysts’ expectations, who had estimated a net income of $37.6 million and an adjusted profit of $0.01 per share, according to Visible Alpha. Revenue fell 8% year-over-year to $1.25 billion, but was still better than forecasts.
Coty CEO Sue Nabi explained that retailers were “acting with caution in the current environment,” which contributed to the company’s weak results. She also mentioned that Coty faced “softness” in U.S. demand, pressure in the mass cosmetics market, and slower fragrance sales following a strong fiscal 2024.
Looking ahead, Coty warned that broader macroeconomic and tariff uncertainties are leading to more cautious retailer ordering and a highly competitive, promotional environment. The company expects like-for-like sales to decline 6% to 8% in the current quarter and fall another 3% to 5% in the following quarter. However, Coty anticipates a return to positive sales in the second half of the fiscal year.
Coty shares have fallen 30% so far this year.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
