Coty tops estimates on prestige brands boost amid turnaround
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Coty shares rose 3% after the company beat first-quarter earnings estimates with $1.56 billion in sales.
- ✓Strong demand for prestige brands like Marc Jacobs helped growth.
- ✓However, the firm warned that second-quarter profits may stay low.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Reuters
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
Under interim CEO Markus Strobel, the company has launched "Coty.Curated" to revive growth and profitability by focusing on its biggest brands, cost-cutting and cash generation.
Sign up here.
Shares of the company were up about 3% in extended market trading.
"We're not quite there. We still have a lot of work to do," Chief Financial Officer Soraya Benchikh, who assumed charge in September, told Reuters, referring to the turnaround.
However, the beauty products maker forecast second-quarter profit largely below estimates, reflecting persistent pressure from higher material and shipping costs tied to the prolonged conflict in the Middle East.
Coty said it expects adjusted earnings per share of 16 cents to 18 cents in the current quarter, compared with estimates of 16 cents, according to data compiled by LSEG.
Unlock the Full Story with ArthNow Premium
To continue reading this complete financial story and in-depth market context, upgrade to ArthNow Premium. Enjoy unlimited access across Web and Mobile.
Reuters
Read the full, original unfiltered story directly on the publisher's portal.