(Reuters) -CoverGirl parent Coty cut its annual profit forecast on Tuesday, signaling soft demand for cosmetics in the United States amid inflationary pressures. The company’s shares fell about 2% in extended trading. They have fallen about 25% so far this year. Coty has been struggling with retailers in the U.S. destocking due to weak demand […]
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Coty cuts annual profit forecast
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(Reuters) -CoverGirl parent Coty cut its annual profit forecast on Tuesday, signaling soft demand for cosmetics in the United States amid inflationary pressures.
The company’s shares fell about 2% in extended trading. They have fallen about 25% so far this year.
Coty has been struggling with retailers in the U.S. destocking due to weak demand from consumers, who are facing the impact of still-high inflation.
Weakness in travel retail business at airports in Asia has also hurt beauty retailers, with cosmetics giant Estee Lauder flagging a sputtering recovery in demand for beauty products in key China market.
Coty expects 2025 per-share profit to be between 49 and 50 cents, compared with its prior forecast of 50 to 52 cents.
(Reporting by Juveria Tabassum in Bengaluru; Editing by Shilpi Majumdar)