Coty Inc (NYSE:COTY) stock extended losses, down 1.6% in premarket deals, as it reported fourth-quarter revenue that edged ahead of Wall Street forecasts, but, earnings that missed analyst expectations.
The fragrance, cosmetics and hygiene products maker reported US$29.6 million in net income, on US$1.352 billion of revenue – up 16% year-on-year and slightly ahead of market consensus of US$1.307 billion.
Earnings (adjusted EBITDA) meanwhile came in at just 1 cent per share, half of the 2 cents expected by analysts.
Chief executive Sue Nabi, in a statement, highlighted ‘resilience’ in consumer demand for beauty products despite macroeconomic uncertainties.
"Today's results mark the third consecutive year that Coty has delivered strong financial, operational and strategic performance, and the twelfth consecutive quarter of results inline to ahead of expectations,” Nabi said.
She added: “In the midst of on-going macroeconomic uncertainty, beauty demand remains resilient across our key categories and geographies, with no signs of tradedown.
“In fact, the beauty category continues to be a standout in key markets like the US, as the only category amongst all CPG and general merchandise categories to grow volumes in the last six months, speaking to the beauty industry's ability to meet consumers' emotional needs.”
Coty updated its guidance for the full year, pitching expectations “to grow at the top end of its medium-term target range of 6% to 8%”.
In New York, Coty stock was down 18 cents or 1.6% changing hands at US$10.79 ahead of Tuesday’s opening bell.