Raw material and freight costs have eased from pandemic-era highs, but a tight labor market is exacerbating the drag of persistent inflation on production costs. This overshadowed Coty's quarterly revenue beat despite customers splurging on its high-end and affordable fragrances and cosmetics, ranging from Hugo Boss to Gucci. The company reported a quarterly adjusted profit of 1 cent per share, missing estimates of 2 cents, according to Refinitiv data. Coty forecast 2024 adjusted profit between 44 cents and 47 cents per share. Rival Estee Lauder (EL.N) had also provided downbeat annual forecasts, hurt by frail recovery in travel retail and slowing U.S. demand.

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Persons: Andrew Kelly, Hugo Boss, Gucci, Laurent Mercier, Mercier, Estee Lauder, Javier Gonzalez Lastra, EL.N, Juveria Tabassum, Ananya Mariam Rajesh, Pooja Desai Organizations: Coty Inc, REUTERS, Coty, Reuters, L'Oreal, Tema, Thomson Locations: Manhattan , New York City, U.S, Bengaluru