Nov 6 (Reuters) - Coty ( COTY ) on Wednesday said it

expects annual profit to come in at the low end of its forecast,

as weak demand for beauty products in major markets such as the

United States and Australia offset gains in the fragrance

segment.

The beauty industry, mainly in the United States, is

witnessing a slowdown in demand even for mass market makeup and

cosmetics as lower- and middle-income consumers continue to

prioritize essential daily need products over beauty items known

as "affordable luxuries."

Coty ( COTY ) is also facing tight inventory management by retailers

globally, while in the United States the company is grappling

with soft sales at drug stores and pharmacy chains.

"Mass beauty is now growing in the low single digits, with

flattish performance in the mass cosmetics category," Coty ( COTY ) said,

adding that slower consumer demand and significant channel

shifts in U.S. mass beauty and in Asia are continuing to weigh

on order levels into second quarter.

The company now expects annual adjusted per-share profit to

be at the low end of its forecast of 54 cents to 57 cents.

Coty ( COTY ) also expects like-for-like sales in the first half of

2025 to grow 3% to 4%, compared with its previous forecast of 6%

to 8%.

However, Coty's ( COTY ) prestige fragrance segment reported a 9%

rise in like-for-like sales, benefiting from new launches such

as Burberry Goddess and Marc Jacobs Daisy Wild fragrances.

Larger rivals Estee Lauder ( EL ) and L'Oreal have

also noted growth in fragrances but flagged a decelerating

demand trend for the beauty category.

Coty's ( COTY ) first-quarter adjusted net income rose to $128.1

million, or 15 cents per share, from $74.1 million, or 9 cents

per share, a year earlier.

Its quarterly net revenue rose nearly 2% to $1.67 billion,

compared to estimates of $1.68 billion, according to data

compiled by LSEG.