Coty sees weak quarterly profit, withholds annual forecasts in 'transition year'

Coty forecast first-quarter adjusted earnings per share of 11 cents to 13 cents, below analysts' estimates of 14 cents, according to data compiled by LSEG.

It expects like-for-like revenue in the current quarter to decline by a low- to mid-single-digit percentage, compared with an 8% drop last year.

The company's sales rose 1.3% to $1.27 billion in the quarter ended June 30, compared with analysts' expectations of a 4.6% decline, according to data compiled by LSEG.

"Consumer demand for beauty remains resilient... although consumers are becoming increasingly selective in their purchasing decisions," the company said.

Coty said the Middle East conflict reduced quarterly sales by about 1%, less than it had forecast in May.

Interim CEO Markus Strobel said higher oil prices would have an annual impact of $20 million to $30 million, while tariff refunds could provide up to $30 million of annual upside.