Coty's quarterly revenue falls short of estimates, hit by supply chain problems
(Compares with estimates, adds segment details)
May 8 (Reuters) - Cosmetics maker Coty Inc reported quarterly revenue that missed Wall Street expectations on Wednesday, hit by supply chain disruptions and lower demand for its beauty products that includes Cover Girl and Rimmel brands.
The company has been struggling with supply chain issues related to streamlining of its distribution centers in Europe and the United States, since its acquisition of about 40 beauty brands from Procter & Gamble in 2016.
However, Coty said it has largely resolved these constraints and expects it to have a minimal impact in the fourth quarter.
Sales in the consumer beauty segment fell 17.8 percent to $840.3 million, as the company's brands face market share losses and continued weakness.
"The weak top-line result demonstrates that there is still much to be done to turnaround the business," Chief Executive Officer Pierre Laubies said in a statement.
Net loss attributable to Coty narrowed to $12.1 million, or 2 cents per share, in the third quarter ended March 31, from $77 million, or 10 cents per share, a year earlier on lower restructuring costs.
Tight control over expenses helped Coty post an adjusted profit of 13 cents per share, beating analysts' estimate of 12 cents.
Net revenue fell 10.4 percent to $1.99 billion, also hit by changes in revenue recognition accounting, missing the average analysts' estimate of $2.06 billion, according to IBES data from Refinitiv. (Reporting by Jaslein Mahil and Soundarya J in Bengaluru; Editing by Shailesh Kuber)
