Coty (COTY) 3Q16 Results: Color Cosmetics Gains Offset Declines in Fragrance

Executive Summary

• Coty reported 3Q16 adjusted EPS of $0.09 versus the consensus estimate of $0.12.
• Total revenues were up 2% year over year, to $950.7 million, versus expectations of $970.7 million. The Europe, Middle East and Africa (EMEA) region and the color cosmetics category led sales growth: each posted a sales increase of 11% on a reported basis.
• Full-year guidance calls for like-for-like revenue performance to remain consistent with year-to-date trends. Adjusted operating income is expected to be in line with the prior year due to the impact of foreign exchange; high-single-digit growth is expected on a constant-currency basis.