Coty Inc. (NYSE:COTY) saw its shares drop nearly 8% in pre-market trading after the firm’s fourth-quarter earnings missed forecasts, reflecting increased marketing spend and the costs of integrating Proctor & Gamble Inc’s (NYSE:PG) beauty business, acquired last year.
The Rimmel make-up to Wella haircare group reported a net loss of US$304.8mln, or 41 US cents per share, wider than a loss of US$31.0mln, or 9 US cents per share posted a year earlier, with adjusted EPS at breakeven, below the 9 US cent consensus forecast.
The loss was recorded despite revenue for the quarter more than doubling to US$2.24bn, up from US$1.08bn last year, and ahead of the US$2.17bn consensus estimate.
Coty shares were down 7.4% to US$18.10 in pre-market trading.