NEW YORK - Coty Inc . (NYSE:COTY) reported first quarter earnings that missed analyst estimates, while revenue came in slightly below expectations. The beauty company also lowered its full-year earnings guidance, sending shares down 0.4% in afermarket trading Wednesday.
Coty posted adjusted earnings per share of $0.15 for the quarter ended September 30, falling short of the $0.20 consensus estimate. Revenue grew 2% year-over-year to $1.67 billion, just under the $1.68 billion analysts were expecting.
The company saw continued strength in its Prestige segment, with revenue up 5% on a reported basis and 7% on a like-for-like basis. However, the Consumer Beauty segment declined 3% on a reported basis and was flat on a like-for-like basis.
"As we enter FY25, the macroeconomic environment remains as complex as ever and the outsized growth of the last few years is now entering the normalization phase," said CEO Sue Nabi. "Nevertheless, one thing is very clear: consumers continue to prioritize beauty in their spending routines, even as they pull back on many other consumer segments."
Looking ahead, Coty lowered its fiscal 2025 earnings per share guidance to a range of $0.54 to $0.57, down from its prior outlook of $0.56 to $0.60. The company now expects adjusted EBITDA growth near the lower end of its previous 9-11% target.
Despite the reduced outlook, Coty maintained its free cash flow growth forecast in the low to mid $400 million range for fiscal 2025. The company also reiterated its goal of reducing leverage to below 3x by the end of calendar 2024.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.