Why Coty Stock Lost 19% in July
Leading beauty product retailer Coty (NYSE: COTY) trailed the market last month by shedding 19% compared to a 1% uptick in the S&P 500, according to S&P Global Market Intelligence. That drop still left shareholders looking at significant short-term gains, with the stock up over 50% so far in 2019 compared to a 14% increase in the broader market.
Image source: Getty Images.
July's slump came following a lukewarm reception on Wall Street for Coty's updated financial targets. On July 1, the company laid out a turnaround plan that calls for improving profitability and reduced debt. However, several pieces of this plan concerned investors, including its projection of essentially no sales growth between now and 2023. Coty also suggested that it may take impairment charges of at least $3 billion in connection with its restructuring initiatives.
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