Coty's sales beat as demand for cosmetics rises

Perfume maker Coty Inc reported better-than-expected quarterly sales, helped by demand for Sally Hansen nail polishes and Rimmel cosmetics.

Coty, whose core perfumes business is struggling due to increased competition, is spending billions on acquisitions as it seeks to transform itself into a global beauty products giant.

The company's sales in the color cosmetics business rose 10 percent to $374.8 million in the three months ended Dec. 31, marking the third straight quarterly increase.

Sales of fragrances fell 9 percent to $627 million in the quarter.

Total sales fell 3.9 percent to $1.21 billion in the latest quarter.

Net income attributable to the company fell to $89 million, or 25 cents per share, in the second quarter, from $125.4 million, or 35 cents per share, a year earlier.

Excluding one-time items, Coty earned 38 cents per share.

Analysts on average had expected earnings of 34 cents per share and revenue of $1.20 billion, according to Thomson Reuters I/B/E/S.