Coty Lowers Profit Forecast as Cosmetics Demand Declines Globally
The beauty giant reports weaker-than-expected Q2 sales, citing inventory reductions, inflation, and slowed growth in key markets like the U.S. and China.
- Coty's Q2 FY25 net revenue fell 1% year-over-year on a like-for-like basis, driven by a 4% decline in its Consumer Beauty segment despite modest growth in Prestige fragrances.
- The company reduced its annual profit forecast, now expecting adjusted EPS between $0.50 and $0.52, down from its prior guidance of $0.54 to $0.57.
- Weak demand for cosmetics in the U.S. and China, along with tighter retailer inventory management, contributed to the revenue decline, with Asia-Pacific sales dropping 11%.
- Coty's adjusted EBITDA for Q2 reached $391 million, slightly exceeding analyst expectations, but the company warned of continued challenges in the second half of FY25.
- Despite softness in cosmetics, fragrances remained a bright spot, with strong performances from brands like Burberry, Hugo Boss, and Marc Jacobs supporting future growth optimism.
Benzinga 