FILE PHOTO: A trader works at the trading post that trades Coty Inc. on the floor of the New York Stock Exchange, June 13, 2013. REUTERS/Brendan McDermid/File Photo
(Reuters) – Cosmetics maker Coty Inc (COTY.N) 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.
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. Analysts were expecting $1.97 billion, according to IBES data from Refinitiv.
Net income attributable to the company was $52.3 million, or 7 cents per share, in the quarter ended Sep. 30, compared with a loss of $12.1 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.
Reporting by Praveen Paramasivam and Soundarya J in Bengaluru; Editing by Shinjini Ganguli