NEW YORK, United States — 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 percent, with weakness in its Younique brand hitting sales by about 2 percent. The company sold its entire 60 percent 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 percent 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 September 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.
By Praveen Paramasivam and Soundarya J; editor: Shinjini Ganguli