Coty Forecasts 20% Sales Drop, Cuts Executive Pay
Coty Inc. (NYSE: COTY), maker of cosmetics, hair care, skincare, and other beauty products, predicts it will see a 20% decline in its sales during its fiscal third quarter of 2020. The coronavirus pandemic hit the beauty sector hard as people switched over to buying essentials such as food and healthcare products. Coty experienced a temporary 52% plunge in share value. Today, in an SEC Current Report, Coty announced it's cutting the pay of some executives by 25%.
CEO Pierre Laubies and CFO and COO Pierre-Andre Terisse are both taking a one-quarter cut in their base salaries for the rest of fiscal 2020. Coty's fiscal year 2020 continues through June 30 of the calendar year, with fiscal 2021 beginning on July 1. Laubies draws a base salary of $1.5 million annually, and Terrisse earns 600,000 pounds per year, or approximately $755,000 at today's exchange rates.
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