Coty Inc. reported Wednesday a fiscal first-quarter profit that beat expectations but revenue that fell a bit shy, as misses in luxury and consumer beauty sales offset a beat in professional beauty sales. the stock was still inactive in premarket trading. The fragrances, cosmetics and skin care company swung to net income of $52.3 million, or 7 cents a share, for the quarter to Sept. 30, from a loss of $12.1 million, or 2 cents a share, in the year-ago period. Excluding non-recurring items, adjusted EPS was 7 cents, above the FactSet consensus of 6 cents. Revenue fell 4.4% to $1.94 billion, just below the FactSet consensus of $1.97 billion. Luxury sales rose 1.7% to $806.7 million but was below the FactSet consensus of $818.0 million; consumer beauty sales dropped 13.5% to $716.5 million to miss expectations of $751.4 million; and professional beauty sales increased 2.4% to $419.6 million to top expectations of $401 million. Gross margin improved to 62.0% from 60.2%. The company expects fiscal 2020 adjusted EPS to grow in the mid-single digit range, while the FactSet consensus of 68 cents implies 4.6% growth. The stock has climbed 11.4% over the past three months, while the S&P 500 has advanced 6.7%.
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