Shares of Coty (COTY) - Get Report sashayed higher Wednesday after the owner of Gucci and other luxury brands posted quarterly earnings and revenue beats and offered relatively upbeat guidance for 2020.
Coty's stock price rocketed 14.62% to $12.20 a share after the fashion giant, whose other brands include Burberry, Tiffany and Hugo Boss, reported fiscal second-quarter earnings of 27 cents a share.
That beat the 24-cents-a-share estimate of analysts surveyed by Zacks Investment Research, while also representing a 13% increase over the same quarter a year earlier.
Coty also edged past analyst estimates on revenue, generating $2.35 billion for the quarter, or 0.11% higher than the Zacks' estimate, though down from $2.51 billion a year earlier.
Looking ahead, Coty, whose other brands include Rimmel, Sally Hansen and Kylie Jenner, estimated 2020 earnings growth in the mid-single digits, a bit higher than the 3.5% growth forecast by analysts polled by FactSet.
Coty predicted flat to modestly lower revenue for 2020, compared to the nearly 5% drop forecast by analysts surveyed by FactSet.
The results come with the fashion and beauty giant having launched a turnaround plan two quarters ago that features "select price increases, more disciplined promotions, and foregoing low value sales," said Coty CEO Pierre Laubies in a statement. The savings, in turn, were being pumped into higher "working media investments behind our brands," he noted.
"Our turnaround plan has been underway for two quarters, and we are confident the actions we are taking will build a much healthier business and growth," Laubies said.