(Corrects paragraph 4 and second bullet to show that comparable
sales declined 10 percent in the Americas, not that
comparable-store sales fell in the United States)
* Expects weak demand for fragrances, nail products in U.S
* First-qtr comparable sales in the Americas fall 10 pct
* Revenue falls 3 percent to $1.18 billion
Nov 7 Perfume and cosmetics maker Coty Inc
reported lower-than-expected quarterly results, hurt by
weak demand for its fragrances and nail products in the United
States, and said it expected this trend to continue in the key
Coty gets most of its revenue by manufacturing perfume
brands such as Calvin Klein, Davidoff and Playboy as well as
those it sells under the names of celebrities such as Beyonce
Knowles, Lady Gaga and Jennifer Lopez.
There have been concerns that the company is too dependent
on the United States and Europe, where middle-income consumers
have been cutting back on discretionary items.
Comparable sales fell 10 percent in the Americas in the
first quarter as weak demand led to a reduction in orders from
Coty's customers in the United States include Wal-Mart
Stores Inc, Target Corp and a variety of other
smaller chains that sell some of its fragrances, nail polish and
"The company expects to see the challenges coming from the
market slowdown and trade destocking in the U.S. and from the
highly promotional environment in Europe to continue in the next
quarter," Coty said in a statement, adding that it expects sales
to grow in the second-half of its fiscal year.
Coty competes with companies such as Estee Lauder Cos Inc
, L'Oreal SA and Elizabeth Arden Inc.
Founded in 1904 by Francois Coty in Paris, Coty went public
in June, after dropping a $10.7 billion takeover bid last year
for larger peer Avon Products Inc.
Avon also reported lower-than-expected results, hurt by a
slowdown in sales in North America.
Net income attributable to Coty rose to $93.5 million, or 24
cents per share, in the first quarter ended Sept. 30 from $86.7
million, or 22 cents per share, a year earlier.
Excluding items, Coty earned 28 cents per share, missing
analysts estimates by 1 cent, according to Thomson Reuters
Revenue fell about 3 percent to $1.18 billion, just below
the average analyst estimate of $1.20 billion. Like-for-like
sales fell 2.6 percent in the quarter.
New York-based Coty's shares closed at $15.40 on the New
York Stock Exchange on Wednesday.
(Reporting by Aditi Shrivastava and Siddharth Cavale in
Bangalore; Editing by Kirti Pandey and Saumyadeb Chakrabarty)