Coty cut its annual profit forecast on Monday after missing second-quarter revenue estimates on Monday, as it grapples with slowing demand for cosmetics in the United States and a tighter control of beauty inventory by retailers.

Beauty products company Coty (NYSE:COTY) in Q4 CY2024, with sales falling 3.3% year on year to $1.67 billion. Its non-GAAP profit of $0.11 per share was 47.7% below analysts’ consensus estimates. Is now the time to buy Coty?

The beauty giant reported ‘sell-out growth’ in fragrances, but this failed to offset the decline in colour cosmetics and ongoing headwinds in China.

Coty reduced its annual profit forecast due to decreased demand for cosmetics amid inflation concerns, leading shares to fall 2% in extended trading. The company reported a surprising quarterly revenue drop,

Coty has reported its results for the second quarter and first half of fiscal 2025. Net revenue dropped 3 percent on a reported basis in the three months to December 31, 2024, to US$1669.9 million.