Categories Consumer, Earnings

Coty shares tumble 24% on supply chain woes

Multinational beauty company Coty Inc (COTY) reported a bigger-than-expected decline in first-quarter sales, hurt by supply chain disruptions in Europe and the US. The CoverGirl cosmetics maker said the declines were mainly due to the streamlining of distribution centers in both these regions.

Coty earnings
Image courtesy: Coty

Shares of the company plunged 24% during intra-day trading on Wednesday.

Net loss attributable to the company shrunk to $12.1 million in the first quarter as revenues fell 9.2% to $2.03 billion. The top line missed street estimate, which was at $2.17 billion.

While Hurricane Florence contributed to a 14% drop in net sales in North America, its biggest market – Europe – witnessed a 10% decline in net sales.

Excluding one-time items, the company earned $0.11 per share, three cents higher than what the street had expected.

“We are very disappointed with the supply chain disruptions that we have experienced over the last quarter and the resulting poor Q1 financial performance,” Chief Executive Officer Camillo Pane said in a statement.

Supply chain worries cost the company much more than what it had anticipated. Though it had initially estimated the expenses for the full-year to be about $50 million, cost to the company in the first year alone was $60 million.

COTY shares have fallen 22% in the past 52 weeks and 44% year to date.

 

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

Most Popular

INTU Earnings: Intuit Q1 2025 adj. profit rises on higher revenues

Financial technology company Intuit Inc. (NASDAQ: INTU) Thursday announced results for the first quarter of 2025, reporting a modest increase in adjusted earnings. The Mountain View-headquartered company’s first-quarter revenue came

Riding the AI wave, Nvidia looks set to stay on the high-growth path

After delivering strong results for the third quarter, Nvidia Corporation (NASDAQ: NVDA) this week said the launch of its new-generation Blackwell chip is on track. The company is thriving on

Target (TGT): A look at some of the challenges faced by the retailer in 3Q24

Shares of Target Corporation (NYSE: TGT) stayed green on Thursday, recovering from the stumble it took a day ago after delivering disappointing results for the third quarter of 2024 and

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