Makeup Demand Slump Wipes Millions off Coty’s Revenue - SolidRumor.com

Makeup Demand Slump Wipes Millions off Coty’s Revenue

 Makeup Demand Slump Wipes Millions off Coty’s Revenue

Coty office building. Shutterstock.

Gucci lipstick maker Coty Inc posted a 16 percent drop in quarterly revenue on Tuesday, hurt by weak demand for makeup products as shoppers stayed at home due to fresh Covid-19 restrictions.

Coty has been working to ramp up its presence in the skin care category as well as online, as sales of makeup products, including foundation and lipsticks, have been pressured due to pandemic-induced lockdowns that have forced shoppers to stay at home.

Shares of Coty, majority owned by German conglomerate JAB Holding Co, were down about 6 percent in premarket trade.

Sales from continuing operations at Coty’s prestige unit that makes Gucci lipstick and Hugo Boss fragrances fell 11.1 percent to $903.7 million.

Beauty products’ sales in major markets, including North America and Europe, have been further hampered by a resurgence in coronavirus cases, prompting fresh lockdowns and store closures.

Net loss attributable to common stockholders widened to $275.4 million, or 36 cents per share, in the second quarter ended December 31, from $21.1 million, or 3 cents per share, last year.

The Burberry fragrance maker, which in December sold a majority stake in its professional and retail hair division to US buyout firm KKR & Co Inc, said its net revenue from continuing operations fell about 16 percent to $1.42 billion in the second quarter ended December 31.

By Aditi Sebastian and Praveen Paramasivam; Editor: Vinay Dwivedi

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