Coty Inc. (COTY) said Friday that it expects fiscal third-quarter revenue to fall 20% due to the coronavirus outbreak, with profit expected to take a "meaningful impact." The FactSet consensus is for revenue of $1.85 billion, implying a 7.4% year-over-year decline. Among the financial measures the company is taking to manage the pandemic, it is recommending to the board that shareholders receive 100% of their dividend in kind for the next two quarters, and JAB, the company's largest shareholder, is paying off the loan it took for the 2019 tender offer in full. A JAB affiliate, Cottage Holdco B.V., holds 60.7% of Coty shares. The company has withdrawn its fiscal 2020 guidance. The beauty company is ramping up its e-commerce focus in the wake of the coronavirus outbreak and as demand for its products on Amazon.com Inc. (AMZN) has nearly doubled in the U.S. in recent weeks. The beauty company is also preparing for a demand increase in Asia post-coronavirus. In Europe, Coty is readying the launch of Kylie Cosmetics. And Coty plans to start manufacturing and supplying emergency services with hand sanitizer. Coty stock is up 5.7% in Friday premarket trading, but down 64.7% over the last 12 months. The S&P 500 index has fallen 4.7% over the past year.
-Tonya Garcia; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
March 20, 2020 07:30 ET (11:30 GMT)
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