Coty shares slide 6% premarket after weaker-than-expected earnings

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Coty shares slide on weaker-than-forecast earnings

Coty Inc. shares COTY, -1.78% slid 6% in premarket trade Thursday, after the cosmetics company posted far weaker-than-expected earnings for its fiscal fourth quarter as the coronavirus pandemic crushed sales. The company said it had a net loss of $722.8 million, or $1.01 a share, in the quarter, narrower than the loss of $2.799 billion, or $3.72 a share, in the year-earlier period.

"Coty's fourth quarter was marked by external shocks, as the COVID-19 pandemic triggered a crisis in the real economy and supply," Chief Executive Peter Harf said in a statement."The severe sales contraction for total Coty, with revenues down $1.2 billion year-over-year, led to significant operating deleverage in the quarter, even as the company focused all its efforts on protecting free cash flow which came in inline with our expectations.

 

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