By  on August 28, 2014

Coty Inc.’s fourth-quarter results disappointed Wall Street as investors sent its shares down 3.4 percent.Even though Coty narrowed its fourth-quarter loss from a year ago, it also fell short of Wall Street’s earnings per share forecast as well as revenue expectations for the quarter. Shares of Coty closed at $17.39.For the three months ended June 30, the net loss was $20.1 million, or 5 cents a diluted share, versus a net loss of $62.3 million, or 16 cents, a year ago. Excluding onetime charges, adjusted diluted EPS was 3 cents, or flat to last year. Even on an adjusted basis, that still fell short of Wall Street’s consensus forecast of earnings of 5 cents a share. Net revenue fell 1.6 percent to $1.04 billion from $1.06 billion, which was also below analysts’ forecast of $1.06 billion in revenue for the quarter.For the year, the net loss was $97.4 million, or 26 cents a share, against net income of $168 million, or 42 cents, a year ago. Revenue fell 2.1 percent to $4.55 billion from $4.65 billion.Michele Scannavini, chief executive officer, said during a conference call to analysts, “Fiscal 2013 was a challenging year for Coty....The revenue decline was mainly due to the pressure we had on our nail business, particularly in the U.S., which more than offset the growth we had in the fragrance and skin-care segments.”He noted that the company drove product development to better meet the needs of its consumers by culture and tastes, with Arabian fragrances for the Middle East, skin care with specific texture and light filters for Asia and light-concentration fragrances for Latin America. The ceo also said the company was making progress on its global efficiency plan, which is aimed at “delivering annual savings in excess of $200 million within the next three fiscal years.”According to the ceo, the company’s fiscal-year 2015 objective is to return to revenue growth and Coty expects “modest growth in the first half of the year as we continue to see softness in our core fragrances and color cosmetics segments, particularly in the mass channel.”RELATED CONTENT: WWD Earnings Tracker >>Click Here for the WWD Global Stock Tracker >>

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