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.”
Supermodel @helenachristensen teamed up with longtime friend and designer @camillastaerk on a joint @paredeyewear collaboration. The lineup features three styles and 11 offerings, all of which embody a vintage feel. Get all the details on how they celebrated the collab on WWD.com. #wwdaccessories #wwdeye (📷: @slovekinpics)
“It’s a hard industry to keep motivated, as well, so finding different subjects and people is what makes it worth it – when you’re like, oh, I’ve met great people, I feel like I’ve done something good, and I feel proud of having done this,” said French actress Stacy Martin on being grateful for the variety of roles she’s take on. Read @ktauer’s full interview with Martin on her her latest film “Godard Mon Amour.” #wwdeye (📷: @danieldorsa)
After showing in front of the Eiffel Tower for his last two women’s ready-to-wear collection, it looks like @anthonyvaccarello may be heading to the Big Apple. Sources say the designer will stage his next @ysl show in NYC on June 6. Get all the details on WWD.com. #wwdnews #wwdfashion (📷: @aitorrosasphoto)
EXCLUSIVE: Two and half months after John Targon, cofounder and codesigner of Baja East, was hired as creative director of the contemporary division at Marc Jacobs, he has left the company, WWD has learned. Marc Jacobs International, which is owned by LVMH Moët Hennessy Louis Vuitton, confirmed Targon’s departure in a statement: “John Targon is a talented designer and we appreciate the work he has done here. Ultimately working together did not make sense for the brand and we wish him the best.” Read the story by @jessiredale, link in bio. #wwdnews
@theluxurycollection is officially launching a collection, tapping Sofia Sanchez de Betak for the capsule. Over 30 styles will be featured in the Chufy x The Luxury Collection, debuting next month at Bergdorf Goodman, The Webster, FiveStory and more. De Betak, known as “@chufy,” drew inspiration for the collection from her trips to Japan in the past year #wwdfashion
@lhd, founder and CEO of @thewebster, has teamed up with @lebonmarcherivegauche for the European launch of her ready-to-wear line, LHD. The launch will come with an exclusive pop-up opening today that’s set to run through May 20. Located on the second floor, it carries her debut Miami-themed resort collection, launched in November as see-now-buy-now. #wwdfashion