Investing.com — Covergirl maker Coty (NYSE:COTY) jumped 20% after reporting better-than-expected results.
A fiscal 2021 first quarter loss per share of 2 cents beat the expected 6-cent loss on sales of $1.12 billion, higher than the estimated $1.08 billion.
Adjusted operating income of $226.5 million increased 46% from $154.7 million in the prior year, driven by strong fixed cost reductions. Net income also improved to $83.6 million from $50.5 million a year earlier.
“Our results met or exceeded our expectations by all measures, showing significant improvement from 4Q20 across all of our regions,” said Chief Executive Officer Sue Y. Nabi. “Our stringent cost control enabled over 20% growth in our adjusted operating income.”
Nabi joined Coty in September. She was the youngest-ever chief executive officer of L’Oréal Paris, and also worked at Lancôme. She co-founded the vegan skincare brand Orveda, which launched in 2017.
Costs savings are increasing as the company reported improving sales trends across all core regions and channels.
Kyle Jenner’s cosmetics brand revenue were pressured by reduced supply related to its third party manufacturer, while Kylie Skincare delivered strong growth. Additionally, e-commerce penetration as a percentage of our overall sales doubled to 13%.
Shares are down 66% for the year.