Coty (COTY) has disclosed its preliminary results for the first quarter and reaffirmed its profit guidance for the full year. The company witnessed a like-for-like sales increase of approximately 4% to 5% during the first quarter, which falls short of the earlier forecasted 6% growth.
Given the current caution among retailers and the gradual deceleration of the U.S. market, Coty projects a moderate like-for-like sales growth for the second quarter. Nonetheless, the company expects growth to pick up in the latter half of the year. This projection is bolstered by easier comparisons from the prior year, a more harmonious sync between sell-in and sell-out, robust launch initiatives across both divisions, and selective distribution expansion.
Coty has intensified its cost reduction strategies across all areas of the profit and loss statement, aiming to exceed its initial fiscal year 2025 cost-saving goal of approximately $75 million.
The company remains confident in its fiscal year 2025 guidance, forecasting adjusted EBITDA growth of 9% to 11% year-over-year, aligning with previous projections, and anticipates a rebound in adjusted EBITDA growth in the second quarter.
Coty plans to release its complete first-quarter results alongside a webcast of its prepared remarks on November 6, 2024.
On Monday, COTY shares closed the regular trading session at $9.17, a decrease of $0.04 or 0.43%. Following the close, the stock further declined in after-hours trading by $0.57 or 6.22%.
