Coty Inc. aims to charge ahead with cost-cutting, while funneling savings back to its power brands.
Coty reported that adjusted net income gained 47 percent to $163.2 million, or 45 cents a diluted share, compared with $111.3 million, or 28 cents a share, in the prior-year period.
The firm’s net revenues decreased 5 percent to $1.26 billion on a reported basis, and were flat in constant currency.
“Our second quarter and first half results demonstrate that our strategy, as outlined last quarter, of investment in and revenue growth on our power brands and returning Coty to profitable growth behind efficiency programs is beginning to yield results,” stated chairman and interim chief executive officer Bart Becht. “While power brands’ like-for-like net revenues grew only very modestly in the quarter and half year, we saw renewed strength on a fiscal year-to-date basis in Sally Hansen, Rimmel, Marc Jacobs, Chloe and philosophy, fueled by successful innovations.”