Why Coty (COTY) Should Be Dropped From Your Portfolio Now?
Zacks Investment Research | Sep 20, 2017 09:19PM ET
Of late, the Consumer Staples sector has been witnessing rising consumer confidence, backed by improving economic and labor market conditions as well rising GDP numbers. This has further triggered an increase in consumers spending power. Apart from purchasing essential items such as grocery, food and beverage products, consumers are also seen to spend heavily on apparel items, personal care and beauty products. Moreover, luxury spending is also aided by the increasing preference for e-commerce.
While such trends have been benefiting cosmetics companies like The Estée Lauder Companies Inc (NYSE:EL) and Nu Skin Enterprises Inc (NYSE:NUS) , other companies in the industry are still struggling with competitive pressures. One such company is Coty Inc (NYSE:COTY) . We observed that Coty’s shares have declined close to 14% since it announced its fourth-quarter fiscal 2017 results on Aug 22. Moreover, the company’s shares have declined more than 9% in the past six months against the Zacks Investment Research
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