Coty Sales Slip 10.4 Percent, But Loss Narrows

Coty Inc. sales continued to slip in its fiscal third quarter, but new chief executive officer Pierre Laubies is creating a plan to hoist them up. “We must capitalize on the solid results of the Luxury and Professional Beauty divisions, and address the weakness of the Consumer Beauty division’s performance via shelf productivity, product range simplification and brand investment at scale. Those are the main priorities of the strategic plan that we are completing and which we will start deploying as soon as fiscal 2020,” Laubies said in a statement. For the quarter, Coty, which owns brands like CoverGirl, Philosophy and Ghd, posted $1.99 billion in sales, down 10.4 percent from the prior year period. Net loss narrowed to $12.1 million, and reported diluted loss per share was 2 cents. The company cited growth in the Luxury segment, “slightly negative” results from the Professional Division and a 10 percent decline in the still-struggling Consumer Beauty segment. Coty’s business has also been affected by supply chain disruptions, which it has worked to fix. The company estimates that year-to-date, supply chain issues have impacted net sales by $150 million. “Third-quarter results clearly indicate that supply issues are largely resolved and we expect very limited impact from supply

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