New York-based Coty posted adjusted net income of $133.8 million, or 17 cents a share, for its fiscal second quarter ended Dec. 31, vs. $205.2 million, or 27 cents a share, in the comparable year-earlier quarter.
Excluding adjustments, the company recorded a loss of 36 cents a share vs. a 3-cent loss a year ago. Analysts polled by FactSet had been expecting per-share earnings of 7 cents.
"Our strong second-quarter results build on the momentum of the first quarter, as the entire organization continued to act with discipline, flexibility and creativity in an uncertain environment," Coty CEO Sue Nabi said in a statement, adding that the company delivered on its own revenue and profit objectives.
The Burberry fragrance maker, which in December sold a majority stake in its professional and retail hair division to U.S. buyout firm KKR & Co. (KKR) - Get KKR & Co. Inc. Report, said net revenue from continuing operations fell about 16% to $1.42 billion in the second quarter ended Dec. 31.
Online sales, meanwhile, surged 40% in the fiscal quarter that ended Dec. 31, with overall revenue trends showing “… moderate sequential improvement, despite a resurgence of COVID and related lockdowns.
“Despite continued disruptions to sales channels and short-term orders related to the COVID-19 pandemic, we remain focused on our strategic priorities and the improvement of our sell-out trends, and will start raising our commercial investments to fuel improvements ahead of full-year 2022,” Coty said in a statement.
Nabi was named Coty's new CEO in July, and took on the role in September. She previously led Lancome and L'Oreal. She also co-founded the Orveda luxury skincare line.
Shares of Coty were down 15.05% at $6.74 in trading on Tuesday.