Coty (COTY) - Get Report shares plunged nearly 15% on Tuesday after the seller of Burberry and Gucci fragrances and lipstick and Cover Girl makeup posted a drop in sales that it attributed to the pandemic.
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.
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 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.
Sue 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.