BUZZ-Coty falls on trimming annual profit forecast, Q2 revenue drop

Shares of CoverGirl parent Coty COTY.N fall as much as 7.2% to over two-year low of $6.28

Coty cut its annual profit forecast and posted a surprise drop in quarterly revenue, as it faces slowing demand for cosmetics

Company now expects annual adjusted EPS to be between 50 cents and 52 cents, compared with its prior forecast of between 54 cents and 57 cents

Coty's Q2 net revenue falls 3.3% to $1.67 billion, its first drop in eight quarters, missing estimates of $1.72 billion, according to data compiled by LSEG

Company also seeing a hit from the closure of some major drug stores as well as from retailers cutting back on their beauty inventory to limit a hit from slowing demand for cosmetics

"We are not surprised by the weaker Q2 result and guidance reduction given ongoing beauty category weakness across categories and geographies" - Stifel analysts

Stifel cuts PT on Coty to $8 from $8.5

In 2024, stock had fallen nearly 44%