Shares of Coty Inc. (COTY) shot up 9.6% toward a six-month high in premarket trading Monday, after the consumer beauty company reported better-than-expected fiscal first-quarter revenue and announced a deal to sell off more of its stake in hair care company Wella. Net income for the quarter to Sept. 30 fell to $103.0 million, or 13 cents a share, from $200.6 million, or 24 cents a share, in the year-ago period. Excluding nonrecurring items, the company swung to adjusted earnings per share of 8 cents from a per-share loss of a penny, beating the FactSet consensus of 3 cents. Revenue rose 22.0% to $1.37 billion, matching the FactSet consensus of $1.37, while "like-for-like" (LFL) sales grew 20.6% to beat the company's guidance of "high-teens" percentage growth. For fiscal 2022, the company raised its LFL sales growth outlook to low-to-mid teens growth from low teens growth. Separately, Coty announced an agreement to sell a 4.7% stake in Wella to KKR & Co. Inc. (KKR) in exchange for the redemption of 56% of KKR's remaining convertible preferred shares in Coty. The Wella stake sale would leave Coty with a 25.9% stake in Wella. Once the deal closes, KKR will have a 2.4% ownership stake in Coty. Coty's stock has rallied 8.0% over the past three months through Friday, while the S&P 500 has gained 5.9%.
(END) Dow Jones Newswires
November 08, 2021 07:08 ET (12:08 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.