03:10 PM EDT, 10/15/2024 (MT Newswires) -- Coty's ( COTY ) preliminary fiscal Q1 results indicate the normalizing beauty category has finally caught up to the company, RBC Capital said in a note emailed Tuesday.

Coty ( COTY ) on late Monday said it expected its fiscal Q1 sales to rise about 4% to 5% like for like, lower than its previously estimated growth of 6%.

According to RBC, the company has been "defying odds" for more than three years by delivering double digit, like for like growth, primarily due to a Covid-driven boom in the prestige fragrance category which accounts for over half of its sales.

While prestige fragrance still remains an outperformer, the fiscal Q1 preliminary results indicate that macro pressures, as well as low consumer sentiment, and a normalizing beauty category as a whole, have finally caught up to the company.

"The question that remains is will there be further downside, on which we will get insight throughout this upcoming earnings season," the firm said.

RBC Capital lowered its fiscal Q1 like for like sales growth forecast to 4% from 5.8% and slashed it to 6% from 7.3% for the fiscal year.

The firm maintained its outperform rating for Coty ( COTY ) with a $14 price target.

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