Coty Earnings Fall
February 09 2017 - 9:30AM
Dow Jones News
By Imani Moise
Beauty-product maker Coty Inc., in the midst of integrating new
businesses from Procter & Gamble Co., reported earnings fell in
the most recent quarter.
Shares fell 7.4% to $18.55 during premarket trading
Thursday.
Chief Executive Camillo Pane said business was hurt by
higher-than-anticipated inventory levels, competitive pressure in
the consumer beauty market and the distraction associated with
integration efforts, but expects declines in net revenue on a
constant currency basis to slow down in the back half of the
year.
In June 2015, P&G announced it would shed brands such as
Wella shampoos, Clairol hair dye and CoverGirl makeup and merge
them with Coty Inc. in a complicated deal originally valued at $13
billion.
As reported, sales soared 90% during the quarter helped by the
acquisition, but fell 4% on a constant currency basis. Sales
declined even further excluding impact of the acquisitions.
In all for the second quarter, Coty reported a profit of $46.8
million, or 6 cents a share, down from $89 million, or 25 cents, a
year earlier. On an adjusted basis, earnings fell to 30 cents from
44 cents.
Revenue rose to $2.3 billion. Excluding the acquisition, sales
fell in the high single digits.
Analysts polled by Thomson Reuters had forecast earnings of 33
cents on $2.36 billion in revenue.
Gross margin fell to 61.1% from 61.4%.
Write to Imani Moise at imani.moise@wsj.com
(END) Dow Jones Newswires
February 09, 2017 09:15 ET (14:15 GMT)
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