Cosmetics maker Coty Inc on Thursday posted a bigger-than-expected quarterly loss and a 56% slump in sales, as demand for its beauty products took a hit from closures of stores and parlors during coronavirus lockdowns.
Shares of Coty, a majority of which is owned by German conglomerate JAB Holding Co, were down about 6% in premarket trade on Thursday and declined nearly 66% this year.
The company and its peers are also battling the closure of many channels of sales, including duty-free shops at airports, as well as contending with work-from-home customers seeking more skincare and haircare products than makeup items.
Consumer Beauty Segment
Sales at Coty's consumer beauty segment, which houses brands such as Cover Girl and Max Factor, plunged about 55%.
Coty, however, said it had seen an improvement in its overall business in the last two months and expects a return to profit in the current quarter.
Net loss attributable to Coty narrowed to $772.8 million, or $1.01 per share, in the fourth quarter ended 30, from about $2.8 billion, or $3.72 per share, last year.
Excluding items, Coty lost 51 cents per share, while analysts on average were projecting a loss of 12 cents per share, according to IBES data from Refinitiv.
Net revenue fell on a reported basis to $922.1 million, missing analysts' estimates of $1.34 billion.