Coty 2nd-quarter performance mixed

Coty 2Q profit misses Street view, revenue tops estimates; hurt by promotional holiday season

Associated Press

NEW YORK (AP) -- Coty's fiscal second-quarter net income fell 33 percent, hurt by U.S. softness in the mass fragrance and nail categories and a highly promotional holiday selling season.

The New York company provides fragrances and beauty products from brands such as Rimmel and Davidoff.

Coty also announced that its board approved the repurchase of up to $200 million of its common shares.

Revenue for the color cosmetics unit dropped 9 percent mostly due to weakness in Sally Hansen. Coty said Friday that Sally Hansen's performance was hurt by softness in the U.S. nail market and an unfavorable comparison with the substantial gel technology launch in the prior-year period.

Fragrance revenue dipped 2 percent due to the timing of new launches, the impact of expired licenses, and highly promotional activity, particularly in the declining mass fragrance market. Revenue for the skin and body care unit also fell 2 percent s solid growth in philosophy was more than offset by difficulties facing the TJoy brand in China.

Coty Inc. said it earned $82.5 million, or 21 cents per share, for the period ended Dec. 31. That compares with $123.2 million, or 31 cents per share, a year earlier.

Taking out certain items, earnings were 28 cents per share.

Analysts surveyed by FactSet forecast earnings of 29 cents per share.

Revenue declined 4 percent to $1.32 billion from $1.38 billion. Wall Street predicted $1.3 billion in revenue.


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