Coty has announced a Q3 fall in revenues as demand for its mass market beauty products have taken a hit, according to a report by the Financial Times.
Revenues fell 10.4 percent YoY to $1.99bn, missing analyst expectations of $2.06bn. The fall in revenue was also attributed to supply chain disruptions in Europe and the U.S. due to Hurricane Florence, which struck in September 2018 and ‘significantly impacted’ the manufacturing plant and distribution centre in North Carolina.
New CEO Pierre Laubies said, “While we have achieved good profit delivery, the weak top-line result demonstrates that there is still much to be done to turnaround the business.
“We must capitalize on the solid results of the Luxury and Professional Beauty divisions, and address the weakness of the Consumer Beauty division’s performance via shelf productivity, product range simplification, and brand investment at scale.”
The company’s consumer business faced a double-digit decline, while the luxury sector saw revenues slide. However, like-for-like sales grew 2.8 percent bolstered by brands such as Gucci, Calvin Klein and Hugo Boss.