(Reuters) -CoverGirl-parent Coty ( COTY ) cut fiscal 2025 profit forecast on Tuesday and postponed its investor day by at least a few months due to macroeconomic and tariff uncertainty, sending its shares down about 3% in extended trading.

U.S. President Donald Trump's erratic trade policies have fueled fears of an imminent recession, prompting customers - who are still reeling under high inflation - to be more discerning towards the discretionary items they buy, including beauty products, and forcing companies to temper their expectations for the year.

Growth in the beauty category decelerated from the first half of fiscal year 2025 as consumer demand softened, with the U.S. market under the most pressure for its mass cosmetics category, CEO Sue Nabi said, adding that demand trends were stronger in Europe.

Retailers in the U.S. have been destocking due to weak demand, with cheaper alternatives on online platforms such as Amazon further pressuring Coty's ( COTY ) mass perfume business.

North America comprises 30% of the company's sales, with products under its consumer beauty segment mostly manufactured in the U.S. Its prestige category products are manufactured primarily in Europe.

While the company's tariff exposure was minimal, Coty ( COTY ) said it would consider transferring production to the U.S. from Europe and broaden its supplier base for marketing and raw material components it sources from China if the levies remain in place for long term.

Coty ( COTY ) said its expanded cost-savings program announced in April and the pricing power of its brands should help it offset the impact from tariffs.

Weakness in travel retail business at airports in Asia has also hurt beauty retailers, with cosmetics giant Estee Lauder flagging a sputtering recovery in demand in key China market.

Coty ( COTY ) expects 2025 per-share profit to be between 49 and 50 cents, compared with its prior forecast of 50 to 52 cents.

The company expects fourth-quarter like-for-like sales to decline in high single-digit percentage range, with annual sales expected to fall about 2%.

Revenue for the third quarter ended March 31 fell about 6% to $1.30 billion, compared with analysts' estimate of $1.31 billion, according to data compiled by LSEG.