Coty Sees Makeup Demand Slump Shave Millions Off Revenue
Coty Inc posted a 16% drop in quarterly revenue on Tuesday, as the Rimmel lipstick maker was hurt by weak demand for makeup products as shoppers stayed at home due to fresh COVID-19 restrictions.
Cosmetics companies have borne the brunt of the COVID-19 crisis that has weakened demand for key items such as colour cosmetics.
Sales of beauty products in major markets, including North America and Europe, have been further pressured by a resurgence in coronavirus cases, which has led to fresh lockdowns and store closures.
The Burberry fragrance maker, which in December sold a majority stake in its professional and retail hair division to U.S. buyout firm KKR & Co Inc, said its net revenue from continuing operations fell about 16% to $1.42 billion in the second quarter ended 31 December.