Coty Reports Preliminary Q1 Like-for-Like Sales Growth Of 4%-5%, Below Its Estimates; Stock Down

(RTTNews) - Coty (COTY) announced preliminary first-quarter results while reiterating its full year profit target. It reported like-for-like sales growth of approximately 4% to 5% in the first quarter, which is slightly below its previously estimated growth of 6%.

Considering the ongoing caution among retailers and a gradually slowing U.S. market, Coty now expects moderate like-for-like (LFL) sales growth for the second-quarter. However, the company anticipates some acceleration in growth during the second half of the year, supported by easier comparisons to the previous year, a renewed alignment between sell-in and sell-out, several strong launch initiatives in both divisions, and selective distribution expansion.

Coty said it is re-accelerating its cost reduction efforts across all parts of the P&L to deliver savings well above the initial fiscal year 2025 target of approximately $75 million.

Coty continues to expect fiscal year 2025 adjusted EBITDA to grow 9% to 11% year-over-year, consistent with prior guidance, including resumed adjusted EBITDA growth in the second-quarter.

Coty said it will publish its full set of first-quarter results and its prepared remarks webcast on November 6, 2024.

COTY closed Monday's regular trading at $9.17 down $0.04 or 0.43%. In the after-hours trading, the stock further dropped $0.57 or 6.22%.

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