12.40 -0.01 (-0.08%)
After hours: 5:37PM EST
|Bid||12.43 x 1200|
|Ask||12.44 x 3100|
|Day's Range||12.32 - 12.60|
|52 Week Range||5.91 - 14.14|
|Beta (3Y Monthly)||0.75|
|PE Ratio (TTM)||N/A|
|Earnings Date||Feb 6, 2020 - Feb 10, 2020|
|Forward Dividend & Yield||0.50 (4.03%)|
|1y Target Est||12.92|
The ongoing pro-democracy protests in Hong Kong have ravaged the region and are threatening the safety and livelihood of residents — and businesses.
Beauty products firm, Coty Inc. says its brands that are selling on Amazon.com Inc. saw 40% sales growth during fiscal first-quarter, providing a key to the company’s turnaround. Coty (COTY) stock is up nearly 14% in Wednesday trading after it reported profit that beat expectations, though sales missed. Some of Coty’s well-known brands, including Covergirl, Sally Hansen and Rimmel are on Amazon (AMZN) .
Coty (COTY) delivered earnings and revenue surprises of 16.67% and -1.75%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?
Coty Inc. reported Wednesday a fiscal first-quarter profit that beat expectations but revenue that fell a bit shy, as misses in luxury and consumer beauty sales offset a beat in professional beauty sales. the stock was still inactive in premarket trading. The fragrances, cosmetics and skin care company swung to net income of $52.3 million, or 7 cents a share, for the quarter to Sept. 30, from a loss of $12.1 million, or 2 cents a share, in the year-ago period. Excluding non-recurring items, adjusted EPS was 7 cents, above the FactSet consensus of 6 cents. Revenue fell 4.4% to $1.94 billion, just below the FactSet consensus of $1.97 billion. Luxury sales rose 1.7% to $806.7 million but was below the FactSet consensus of $818.0 million; consumer beauty sales dropped 13.5% to $716.5 million to miss expectations of $751.4 million; and professional beauty sales increased 2.4% to $419.6 million to top expectations of $401 million. Gross margin improved to 62.0% from 60.2%. The company expects fiscal 2020 adjusted EPS to grow in the mid-single digit range, while the FactSet consensus of 68 cents implies 4.6% growth. The stock has climbed 11.4% over the past three months, while the S&P 500 has advanced 6.7%.
Coty Inc reported quarterly profit above Wall Street expectations on Wednesday, helped by increased demand for its high-margin Hugo Boss, Burberry and Gucci fragrances, sending its shares up more than 17%. Adjusted gross margin expanded 160 basis points to 62%, above analysts' expectation, also helped by cost controls. Coty, which has an outstanding debt of $7.37 billion as of Sept.30, launched a restructuring plan in July after struggling to integrate brands including Max Factor and CoverGirl it bought from Procter & Gamble in 2016.
Adjusted gross margin expanded 160 basis points to 62%, above analysts' expectation, also helped by cost controls. Coty, which has an outstanding debt of $7.37 billion as of Sept.30, launched a restructuring plan in July after struggling to integrate brands including Max Factor and CoverGirl it bought from Procter & Gamble in 2016. "Although we are still in the early stages of activating our plans, we are beginning to see some green shoots in our operational performance," said Chief Executive Officer Pierre Laubies in a post-earnings conference call.
The Board of Directors of Coty Inc. (COTY) declared a quarterly cash dividend of $0.125 per common share, payable on December 27, 2019, to shareholders of record on November 18, 2019. This dividend is eligible for Coty’s stock dividend reinvestment program giving shareholders the option to receive their full dividend in cash or to receive their dividend in 50% cash / 50% common stock. For purposes of determining the common stock dividend, the number of shares of common stock will be calculated on the basis of the average share price on the New York Stock Exchange over the period of five trading days up to and including November 18, 2019.
To support its ongoing turnaround plan and future growth, and the strengthening of its leadership organization for its supply chain, Coty Inc. today announced the appointment of Richard Jones as Global Chief Supply Officer and a member of the Executive Committee effective November 1st. Richard will report to Pierre Laubies, CEO, and be based in Amsterdam. Richard will have responsibility for manufacturing, planning, logistics and distribution, while procurement remains a separate dedicated organization.
Coty (COTY) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Coty Inc. will still have problems, even if it does decide to sell off the professional beauty and Brazilian businesses, Wells Fargo analysts say. Coty announced on Monday that it was exploring strategic options for these businesses, which could include a divestiture. Revenue for these businesses is expected to be $2.7 billion for the year. "However, selling off the businesses won't change Coty's ongoing challenges in consumer beauty, and we still view Coty, excluding professional beauty, as a structurally disadvantaged portfolio versus peers," Wells Fargo said. Still analysts say the announcement is positive, and maintained their market perform stock rating. Analysts raised its price target to $11 from $10. D.A. Davidson also raised its price target, to $13 from $10.50. Analysts maintained their neutral stock rating. "Coty has relatively complete portfolios of prestige fragrance and mass color brands, but with its newly-stated strategic objective, we expect the company, once deleveraged, to pursue acquisitions of prestige color and prestige skin care brands," analysts led by Linda Bolton Weiser wrote. Coty stock inched down 0.7% in Tuesday premarket trading, but shares are up 75% for the year to date. The S&P 500 index is up 20% for 2019 so far.
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(Bloomberg) -- Coty Inc., under pressure to turn its business around, is considering a sale of its professional hair and nail products unit that includes the brands Wella, Clairol and OPI. The shares surged the most in more than five months.The cosmetics company hired Credit Suisse to help it explore options for the professional business, which sells to salons and is expected to make $2.7 billion in sales this year. It’s also looking at a sale of its Brazilian operations, and expects a review to be completed by next summer, according to a statement Monday.A sale is expected to kick off this year and attract interest from both rival beauty companies and private equity firms, according to a person familiar with the matter. Coty is open to reviewing bids for all and parts of the business as it aims to raise as much money as possible, said the person, who asked not to be identified because the details are private.Coty has been formulating a comeback plan after a difficult few years. In July, Chief Executive Officer Pierre Laubies laid out the first steps of a turnaround plan intended to revive margins, reduce leverage and better keep up with its rivals. He said at the time some brands could be on the chopping block.Possible BiddersCoty may attract similar suitors that bid for Nestle SA’s skincare business, which it sold to a group led by EQT AB for 10.2 billion Swiss francs ($10.1 billion) earlier this year. Other bidders for all or part of that business at the time included KKR & Co., PAI Partners, Advent International and Cinven as well as Colgate-Palmolive Co. and Unilever NV, people familiar said at the time. German beauty and chemicals company Henkel AG had also previously looked to acquire Wella in 2015.Proceeds from any potential transaction will be used to pay down debt and return excess cash directly to shareholders. JAB Holding Co., the company’s biggest shareholder, said in the statement that it supports the move.Coty spokeswoman Lisa Kessler said that the strategic review includes looking at some of Coty’s retail hair products as well. That could include the Wella and Clairol products, as well as GHD appliances sold at grocery stores and pharmacies in addition to the professional equivalents. The OPI retail business is also under the review, she said.“This is not about our lack of belief in the professional business,” Kessler said in an interview. “It’s part of our strategic review for our turnaround plan.”Shares of Coty climbed as much as 13% to $11.46 in New York, the biggest intraday gain since May. While they had already climbed 54% this year through Friday’s close, they are well below their high of more than $32 in mid-2015.Earlier WritedownsCoty has felt pressure to make a change. Earlier this year, it took a $965 million writedown on the value of the brands it agreed to purchase from Procter & Gamble Co. in 2015, including CoverGirl and Clairol. Coty shares have tumbled since that deal was announced.Meanwhile, rival cosmetics companies have been rapidly acquiring hot new brands as they search for the next big hit, often picking labels that attract younger, trendier shoppers. In July, it said it will take a separate $3 billion writedown as its aging mass-market brands face new competition.Selling the Brazilian and professional divisions would let the company focus on its fragrance, cosmetics and skincare businesses.To contact the reporters on this story: Tiffany Kary in New York at firstname.lastname@example.org;Aaron Kirchfeld in London at email@example.comTo contact the editors responsible for this story: Anne Riley Moffat at firstname.lastname@example.org, Lisa WolfsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The cosmetics company has struggled to integrate about 40 beauty brands, including Covergirl and Max Factor, that it bought from Procter & Gamble in 2016, forcing it to take billions of dollars in writedowns and outline a four-year restructuring plan. The company also said it was exploring options for its Brazilian unit as it shifts its focus to its fragrance, cosmetics and skin care businesses. "Coty is the No. 2 player in the global professional hair business, which has high consumer loyalty and should be an attractive business to a potential buyer," Wells Fargo analyst Joe Lachky said.
Coty Inc. stock rose 5.8% in Monday premarket trading after the beauty company announced it will explore strategic alternatives for its professional beauty business. Coty's professional beauty business includes the OPI, Clairol and Wella brands. The move is part of the company's turnaround plan, and an effort to focus on the fragrance, cosmetics and skin care business, Coty said in a statement. Coty is also considering the options for its Brazilian operations, including a divestiture. The entire scope of business under consideration is expected to generate $2.7 billion in 2019 revenue. The company expects to use the proceeds from any transaction to pay down debt, with the excess going back to shareholders. There is no change to the company's guidance for operating margin between 14% to 16% by fiscal 2023. Coty stock has rallied 54.3% for the year to date, but is down nearly 4% for the last year. The S&P 500 index has gained nearly 8% for the past 12 months.