Coty has revised its annual profit expectations, projecting adjusted per-share earnings to fall at the lower end of its previous forecast range of 54 to 57 cents. The company cited weakened demand for mass-market beauty products in key markets like the U.S. and Australia as a key factor behind the adjusted forecast.
The U.S. beauty market is undergoing a shift, with lower- and middle-income consumers prioritizing essential items over discretionary beauty products. This trend has led to slower sales, even in categories that had previously shown resilience. Coty noted modest single-digit growth in mass beauty and stagnant performance in mass cosmetics, with conservative inventory management by retailers further contributing to the slowdown.
Although Coty reported a rise in adjusted net income for the first quarter, reaching $128.1 million (or 15 cents per share), and a nearly 2% increase in net revenue to $1.67 billion, both figures fell short of analyst expectations. Looking ahead, the company now projects first-half 2025 like-for-like sales growth of 3–4%, down from its earlier estimate of 6–8%.
Coty’s revised outlook highlights a broader industry challenge, as economic pressures continue to dampen demand for mass-market beauty products.
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