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By
Reuters
Published
Nov 5, 2015
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Coty sales miss estimates as demand for perfumes fall

By
Reuters
Published
Nov 5, 2015

Perfume maker Coty Inc reported lower-than-expected quarterly revenue, hurt by weak demand for perfumes such as Calvin Klein and skin and body care products such as Playboy and philosophy.


Coty holds the licence for Calvin Klein perfumes - Coty


The company's sales from perfumes fell 8 percent, while those from skin & body care fell 1 percent in the first quarter, on a comparable basis, which excludes items such as foreign exchange fluctuations and acquisitions.

As its perfumes lose appeal, Coty has been expanding its presence in make-up and skin care, which are a big draw for younger consumers.

The company said in July it would buy 43 brands from Procter & Gamble Co for $12.5 billion, a deal, when completed, would make it the world's No. 3 make-up maker behind L'Oreal SA and Estee Lauder Cos Inc.

Net income attributable to Coty rose to $125.7 million, or 34 cents per share, in the three months ended Sept. 30, from $10.6 million, or 3 cents per share, a year earlier.

Excluding items, the company earned 59 cents per share.
Net revenue on a comparable basis fell 2 percent to $1.11 billion. On a reported basis, they fell 8 percent.

Analysts on average were expecting revenue of $1.13 billion, according to Thomson Reuters I/B/E/S.

 

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