Investment Bank Jefferies Downgrades Coty, Stock Price Down 20%
On Thursday, investment bank Jefferies downgraded Coty’s stock to “hold”, citing its deteriorating sales growth, weakness in its mass cosmetics business, and fears that its perfume division, which comprises around 60 percent of sales, would not be resilient enough to bolster overall revenues. Coty’s stock dropped 20 percent on Thursday after reporting like-for-like revenue declines for 9 percent in its fourth quarter and 2 percent for the full year.
In its full-year earnings, Coty’s mass cosmetics division, which houses the drugstore brand Covergirl and comprises around 35 percent of its sales, declined 8 percent, despite the overall market growing 2 percent. Its prestige business, which includes fragrances from fashion house…
