(Reuters) -CoverGirl parent Coty (NYSE:) estimated first-quarter like-for-like sales growth on Monday lower than previously forecast due to a slowdown in the U.S., sending shares down 6% in aftermarket trading .
The cosmetics maker forecast like-for-like (LFL) sales growth of between 4% and 5% for the three months ending September, up from the 6% previously forecast.
Coty said very tight order and inventory management by retailers resulted in weakness in certain markets such as the US, Australia and China.
The company and its rivals included Estee Lauder (NYSE:) and L’Oreal have signaled pressure on consumer spending for beauty and cosmetics products, which are widely considered an affordable luxury and recession-proof.
Coty now expects like-for-like sales to grow moderately in the second quarter, with some acceleration in the second half of the year.
The company said it has once again accelerated its cost-cutting efforts to achieve savings well above the original target of approximately $75 million in fiscal 2025, anticipating “a more uncertain demand environment, including cautious shopping behavior and a complex macroeconomic environment.”
The company, which maintained its annual core profit target, will report first-quarter results on November 6.
