Coty Inc. is facing backend issues that caused its fiscal first-quarter numbers to plummet — but if one takes that out of the equation, the company’s Luxury and Professional divisions have sustained momentum, according to chief executive officer Camillo Pane.
“We clearly are frustrated and disappointed with this temporary headwind, but this is really a temporary setback to our plans. We are absolutely convinced in the ambitious transformation agenda we are pushing,” Pane told WWD in an interview.
The market took a different view, however: Coty’s stock tanked on Wednesday, falling more than 20 percent in midday trading to $8.92.
The beauty business posted a 9.2 percent drop in net sales, to about $2 billion, and a $12.1 million loss — widening by 39 percent from the prior-year period. The diluted loss per share was $0.02. The company said that warehouse and planning center consolidation disruptions in Europe and the U.S., as well as component shortages from external suppliers and Hurricane Florence in the U.S. (which impacted North Carolina manufacturing), caused more problems than anticipated.
In an exclusive interview, Pane talked more about Coty’s backend problems, which are partially due to the company’s continued integration of the 41 beauty brands it bought