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NEW YORK - Cosmetics maker Coty Inc . (NYSE:COTY) saw its shares drop 2.7% in after-hours trading Tuesday after reporting third quarter earnings and revenue that fell short of analyst expectations.
The company posted adjusted earnings per share of $0.01 for the quarter ended March 31, missing the consensus estimate of $0.06. Revenue came in at $1.3 billion, slightly below the $1.31 billion analysts were expecting.
Coty’s sales declined 6% year-over-year on a reported basis and 3% on a like-for-like basis, reflecting challenges in both its Prestige and Consumer Beauty segments. Prestige revenue fell 4% to $829.4 million, while Consumer Beauty revenue dropped 9% to $469.7 million.
"While we are not satisfied with our net revenue performance, Coty’s strong fundamentals, coupled with our multi-pronged attack-plan for accelerating innovation, distribution and efficiencies, gives us confidence for the years ahead," said CEO Sue Nabi.
The company lowered its full-year outlook, now expecting a 2% decline in like-for-like sales for fiscal 2025. Coty sees adjusted EPS of $0.49-$0.50 for the year, near the low end of its prior guidance range.
Management cited a challenging operating environment, particularly in the U.S. prestige fragrance and mass color cosmetics markets. Coty is working to clean up retailer inventories and rebalance resources to drive improvement in fiscal 2026.
Despite the near-term headwinds, Nabi expressed optimism about Coty’s pipeline of launches and expansion plans to accelerate growth next year. The company is also implementing cost savings initiatives to protect profitability.
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