Coty Inc.'s second quarter results showed just how challenging the period was for the mass fragrance and nail categories.
For the three months ended Dec. 31, net income fell 33 percent to $82.5 million, or 21 cents a diluted share, from $123.2 million, or 31 cents, a year ago. Net revenues slipped 4.1 percent to $1.32 billion from 1.38 billion a year ago.
Michele Scannavini, chief executive officer, said, "We faced a challenging second quarter, as expected. U.S. market softness particularly in the mass fragrance and nail categories, and the high level of promotional activity through the holiday season, have impacted our performance in mature markets."
The ceo added that the firm's investment in emerging markets is "starting to yield positive results, with solid growth driven by Brazil, Southeast Asia, and South Africa."
The company said that while conditions in the U.S. and in certain European markets remain challenged, Coty is targeting a return to top-line growth in the second half of its fiscal year. This will be fueled by initiatives and increased investment behind its power brands, plus further acceleration of its businesses in the emerging markets, the company said.
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