Cosmetics maker Coty Inc posted first-quarter revenue that fell short of Wall Street estimates on Wednesday, hit by sluggish sales of its mass-market beauty brands.
Coty, like other cosmetics makers, has been facing slowing demand for makeup products with minimal or no-make-up looks in vogue among teenagers and millennials who also prefer buying cosmetics online or from specialty beauty stores.
Revenue at Coty's consumer beauty business fell 9.7%, with weakness in its Younique brand hitting sales by about 2%. The company sold its entire 60% stake in Younique in September.
Professional Beauty Business
Coty is also exploring a sale of its professional beauty business, which includes brands such as Wella and Clairol, as part of its move to cut debt.
Net revenue fell 4.4% to $1.94 billion (€1.8 billion). Analysts were expecting $1.97 billion (€1.8 billion), according to IBES data from Refinitiv.
Net income attributable to the company was $52.3 million (€47.2 million), or 7 cents per share, in the quarter ended 30 September, compared with a loss of $12.1 million (€10.9 million), or 2 cents per share, a year earlier.
Excluding items, Coty earned 7 cents per share, while analysts were expecting 6 cents per share.