Aug 19 (Reuters) - Coty on Wednesday posted a surprise increase in fourth-quarter revenue on resilient demand for fragrances and cosmetics, and said fiscal 2027 would be a "transition year" as it conducts a strategic review to focus on its key brands.
The company is advancing its "Coty. Curated." strategy to simplify its business and conducting a review of the consumer beauty division, at a time when geopolitical conflicts and economic uncertainty have made customers tighten spending.
The review, expected to complete by year-end, could lead to the sale of brands such as CoverGirl and Rimmel.
The initiative, along with a cost-reduction program, would help offset a likely sales hit in fiscal 2028 from its early return of Gucci Beauty license to Kering , and support profit growth from fiscal 2029, Coty said.
Coty's net revenue rose 1.3% to $1.27 billion in the quarter ended June 30, compared with ******* ysts' average estimate of a 4.6% decline, according to data compiled by LSEG.
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The company is advancing its "Coty. Curated." strategy to simplify its business and conducting a review of the consumer beauty division, at a time when geopolitical conflicts and economic uncertainty have made customers tighten spending.
The review, expected to complete by year-end, could lead to the sale of brands such as CoverGirl and Rimmel.
The initiative, along with a cost-reduction program, would help offset a likely sales hit in fiscal 2028 from its early return of Gucci Beauty license to Kering , and support profit growth from fiscal 2029, Coty said.
Coty's net revenue rose 1.3% to $1.27 billion in the quarter ended June 30, compared with ******* ysts' average estimate of a 4.6% decline, according to data compiled by LSEG.
#wednesday
2 days ago
