Coty expects Q1 sales drop, will raise some of its prices

Coty on Wednesday forecast a drop in current-quarter sales as weak spending in the US sapped demand for beauty products, and said it would raise prices for its premium fragrances to mitigate tariff costs.

- JUVERIA TABASSUM ANUJA BHARAT MISTRY

The company’s shares were down 16% in extended trading after it also posted a surprise fourth-quarter loss.

Coty will raise prices in its premium fragrances unit in the US and onshore some production to cushion the impact of the 15% duties on imports from Europe under US President Donald Trump's tariffs policy, executives said.

Retailers in the US are increasingly cautious due to tariffs and are destocking inventories as cost-conscious consumers tighten spending on some beauty and skincare products.