Why Coty (COTY) Stock Is Higher This Morning

NEW YORK (TheStreet) -- Shares of Coty Inc. (COTY) are up 4.60% to $16.15 after the beauty company and Avon Products, Inc. (AVP) announced today that they've entered into a partnership by which select Coty fragrances will be marketed and sold through Avon Brazil's network of 1.5 million independent sales representatives.

Brazil, Avon's largest market, is also the largest fragrance market globally.

Earlier, Coty reported a third quarter loss, compared with a profit a year earlier, affected by a charge related to its skin and body care business in China.

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The company posted a net loss of $253.3 million, or 66 cents per share, compared to a profit of $20.4 million, or 5 cents per share, last year.

The company recorded a non-cash asset impairment charge of $316.9 million after its efforts to revamp its TJoy business in China did not produce expected cash flows, Reuters reports.

Net revenue increased about 1% percent to $1.01 billion.

On an adjusted basis the company reported a profit of 22 cents per share.

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