CoverGirl parent Coty cut its annual profit forecast on Tuesday, signalling soft demand for cosmetics in the United States amid inflationary pressures.
The companyâs shares fell about 2 percent in extended trading. They have fallen about 25 percent so far this year.
Coty has been struggling with retailers in the US destocking due to weak demand from consumers, who are facing the impact of still-high inflation.
Weakness in travel retail business at airports in Asia has also hurt beauty retailers, with cosmetics giant Estée Lauder flagging a sputtering recovery in demand for beauty products in key China market.
Coty expects 2025 per-share profit to be between 49 and 50 cents, compared with its prior forecast of 50 to 52 cents.
By Juveria Tabassum; Editing by Shilpi Majumdar
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