Aug 20 (Reuters) - Coty ( COTY ) on Wednesday edged past

market estimates for fourth-quarter revenue, helped by resilient

demand for its premium fragrances in Europe and other

international markets.

The company has focused on product launches for its prestige

fragrances such as the Burberry Goddess as well as the upcoming

line under the Hugo Boss brand to capitalize on demand for

pricier fragrances from wealthy customers.

Coty's ( COTY ) fourth-quarter revenue fell 8% to $1.25 billion, but

beat estimates of $1.20 billion, according to data compiled by

LSEG.

At the same time, the company is grappling with retailers in

the U.S. becoming increasingly cautious due to tariffs and

destocking inventories as cost-conscious consumers tighten

spending on some beauty and skincare products.

Coty ( COTY ) sees first-quarter like-for-like sales declining 6% to

8%, compared with 4.5% growth a year ago. The company expects

product launches in both its prestige and consumer beauty

categories to help drive sales growth in the second half of the

year.

Coty ( COTY ) reported an adjusted quarterly loss of 5 cents per

share, compared with analysts' estimates of a profit of 2 cents

per share. The loss included a negative impact from an equity

swap mark-to-market of $0.07 due to the stock price decline in

the quarter, the company said.

Its shares have fallen nearly 30% so far this year,

following a 44% drop in 2024.

The company was also transferring production of mass

fragrances and entry prestige fragrances sold in the U.S. to

domestic manufacturing plant to mitigate some impact from

President Donald Trump's tariffs on imports into the United

States.

Operating results for fiscal 2025 included a $212.8 million

non-cash asset impairment charge recorded in the third quarter

related to its color cosmetics business due to weak demand in

both the U.S. and Europe, the company said.

Weak demand in the travel retail business at airports in

regions such as mainland China has also been hitting sales at

luxury beauty retailers like Estee Lauder ( EL ), which gave a

weak annual profit forecast on Wednesday.