(Reuters) -Coty cut its annual profit forecast on Monday after missing second-quarter revenue estimates on Monday, as it grapples with slowing demand for cosmetics in the United States and a tighter control of beauty inventory by retailers.
Coty’s results come shortly after those of Elf Beauty and L’Oreal, which have flagged softer growth in the mass beauty market in the United States as customers splurge less on cosmetics and makeup kits.
This along with tight inventory management by retailers, drug store closures and weak traffic at department stores has led to slowing sales growth for Coty, which is now looking to expand its fragrance lineup.
Coty now expects annual adjusted per-share profit to be between 50 cents and 52 cents, compared with prior forecast of profit at the low of 54 cents to 57 cents range.
The company’s quarterly net revenue fell to $1.67 billion from $1.73 billion. Analysts on average had estimated sales of $1.72 billion, according to data compiled by LSEG.
(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Anil D’Silva)
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