Coty (NYSE:COTY) took a huge hit from to the COVID-19 pandemic in its most recent quarter, but management says it is ready to move on. The makeup giant said on Thursday that organic sales fell 60% in the fiscal fourth quarter, covering April through June, as retailing was stopped by stay-at-home orders.
"Coty's fourth quarter was marked by external shocks as the COVID-19 pandemic triggered a crisis in the real economy and supply," executive chairman Peter Harf said in a press release.
Coty reported an adjusted operating loss of $335 million, compared to a $126 million profit a year ago.
Despite those poor metrics, management expressed confidence that a rebound is already building. Coty said sales trends improved gradually in each month of the quarter, and bigger gains have come during the first two months of the current quarter.
The makeup industry is likely to see continued pressure as social distancing remains a priority and consumers reduce their shopping trips. Yet while sales could take time to recover, Coty is predicting a quick return to profitability in the fiscal first quarter. Following that, investors could see bigger strategic changes ahead as new CEO Sue Nabi steps into the role on Sept. 1 and begins implementing her agenda.