NYSE-listed Estée Lauder Companies Inc. (NYSE: EL) and Coty Inc. (NYSE: COTY) are among the major U.S.-based cosmetics companies that have registered solid quarterly earnings growth and share price recently. With brick-and-mortar stores closed last year, the demand for beauty products remained low in 2020. Both the companies saw volatile trading sessions in the previous year and reported a significant impact from the coronavirus pandemic in the comparable quarter. However, Estée Lauder swung to profit in the fiscal third quarter ended March 31 while Coty narrowed its loss. The same has been the case with their stocks, which are on a growth trajectory this year.
However, the stock fell 12.96 percent to US$9 on Monday after the New York-based cosmetics company said its net sales declined 3.3 percent year over year to US$1.03 billion in the fiscal third quarter ended March 31. But Coty managed to narrow its third-quarter net loss to US$1.2 million, compared with a net loss of US$311.0 million in the same quarter last year. The company also posted an adjusted net income of US$2.3 million for the three months, against an adjusted net loss of US$104.7 million in the year-ago quarter.