Gucci lipstick maker Coty Inc posted a 16% drop in quarterly revenue on Tuesday, hurt by weak demand for makeup products as shoppers stayed at home due to fresh COVID-19 restrictions.
Coty has been working to ramp up its presence in the skin-care category as well as online, as sales of makeup products, including foundation and lipsticks, have been pressured due to pandemic-induced lockdowns that have forced shoppers to stay at home.
Shares of Coty, majority owned by German conglomerate JAB Holding Co, were down about 6% in premarket trade.
Sales from continuing operations at Coty’s prestige unit that makes Gucci lipstick and Hugo Boss fragrances fell 11.1% to $903.7 million.
Beauty products’ sales in major markets, including North America and Europe, have been further hampered by a resurgence in coronavirus cases, prompting fresh lockdowns and store closures.
Net loss attributable to common stockholders widened to $275.4 million, or 36 cents per share, in the second quarter ended Dec. 31, from $21.1 million, or 3 cents per share, last year.
The Burberry fragrance maker, which in December sold a majority stake in its professional and retail hair division to US buyout firm KKR & Co Inc, said its net revenue from continuing operations fell about 16% to $1.42 billion in the second quarter ended Dec. 31.