Categories Consumer, Earnings

Coty’s Q4 results come in line with estimates

Coty Inc. (NYSE: COTY) reported revenue and earnings in line with analysts’ estimates for the fourth quarter of 2019. Shares were up 6.8% in premarket hours on Wednesday.

Total revenues fell 8% year-over-year to $2.11 billion. On a like-for-like (LFL) basis, revenues fell 4.1%, driven by decreases in the Consumer Beauty and Professional Beauty divisions.  

Coty reported revenue and earnings in line with market estimates for Q4 2019

On a reported basis, net loss widened to $2.7 billion, or $3.72 per share, from $181.3 million, or $0.24 per share, in the prior-year period due to asset impairment charges. Adjusted net income increased 16% to $123.6 million while adjusted EPS rose 14% to $0.16.

Pierre Laubies, CEO said, “We are now fully engaged in FY20. Our Turnaround Plan focuses on reshaping and simplifying our beauty business to generate fuel for growth and leverage the potential of our Consumer Beauty brands, while continuing to improve growth and margins in our Luxury and Professional Beauty divisions.” 

In the Luxury division, net revenues increased 1.7% on a reported basis and 5.8% LFL. The growth was driven by strength in the Burberry, Gucci, Calvin Klein, Hugo Boss and Marc Jacobs brands as well as momentum in ALMEA and Travel Retail.

Net revenues in the Consumer Beauty division fell 15.2% on a reported basis and 11.5% LFL, due to weakness in Younique. In the Professional Beauty segment, revenues decreased 7% on a reported basis and 3.1% LFL, mainly due to weakness in North America stemming from destocking at key accounts.

Also see: Tiffany Q2 2019 Earnings Report

For fiscal year 2020, net revenues are expected to be stable to slightly lower LFL, starting in Q1 2020. Adjusted EPS is expected to grow in the mid single digit range. Adjusted operating income is expected to grow 5-10% year-over-year.

Coty has developed a business and financial framework for the next four years and is targeting a gradual return to low single digit sales growth, operating margins at 14-16%, and free cash flow above $1 billion in fiscal year 2023. 

Coty declared a dividend of $0.125 per common share, payable on September 30, 2019 to stockholders of record on September 9, 2019.   

Coty’s shares have gained 35% year-to-date.

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

Infographic: How Starbucks (SBUX) performed in Q1 2023

Starbucks Corporation (NASDAQ: SBUX) reported first quarter 2023 earnings results today. Consolidated net revenues increased 8% year-over-year to $8.7 billion, in line with projections.   Global comparable store sales increased

Earnings: Google parent Alphabet (GOOG, GOOGL) reports lower Q4 profit

Alphabet Inc. (NASDAQ: GOOGL, GOOG) on Thursday reported a 1% increase in fourth-quarter 2022 revenues, with strong contributions from the cloud business. The company, which owns the largest internet search

HOG Earnings: Key quarterly highlights from Harley-Davidson’s Q4 2022 financial results

Harley-Davidson, Inc. (NYSE: HOG) reported fourth quarter 2022 earnings results today. Revenue increased 12% year-over-year to $1.14 billion. Net income attributable to Harley-Davidson, Inc. rose 94% YoY to $42 million,

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top