Coty Posts Mixed Fiscal Third-Quarter on Strong Comparable Sales in Asia Pacific, COVID-19 Lockdown Impact in Europe
12:40 PM EDT, 05/10/2021 (MT Newswires) -- Coty (COTY) reported mixed results in its fiscal third quarter on Monday as the parent of brands including Cover Girl and Sally Hansen posted strong comparable sales in Asia Pacific while it faced the impact of COVID-19 lockdowns in Europe and maintained its outlook for 2021.
The New York-based beauty company reported flat adjusted earnings a share in the quarter ended March, compared with a loss of $0.14 per share a year ago. Analysts polled by Capital IQ expected adjusted EPS of $0.01. Revenue fell to $1.03 billion from $1.06 billion. The Street expected $1.03 billion.
"Our Q3 marked another strong milestone in our journey to rejuvenate Coty's position as a global beauty powerhouse," said Chief Executive Sue Nabi in a statement. "We saw a significant improvement in our sales trends even as we continued our efforts to strengthen the health of our business and brands by cutting sales in low quality channels."
On a like-for-like basis, Asia Pacific revenue grew about 20% to $145.2 million on triple-digit growth in China. Americas fell 3.4% to $409.6 million. Europe, the Middle East and Africa also declined by 13% to $473 million due to COVID-19 lockdowns in the region. E-commerce in the quarter grew 28% year over year for the full year.
Coty maintained a revenue outlook of $4.5 billion to $4.6 billion for fiscal 2021. The Street expects $4.54 billion.
"During the fourth quarter, we will be ramping up our work in media investment to support our focused brands and key growth pillars," said Nabi in an earnings call, according to a Capital IQ transcript. In fiscal 2022, "we fully expect our reinvestments to be funded through both gross margin expansion and further cost reductions."
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