* Q3 adjusted EPS of $0.15 tops estimates of $0.13
* Adjusted net revenue up 6 pct, beating estimates
* Revenue excluding acquisitions declines 2 pct
* Q3 rev to fall vs Q2 on retail shelf space loss
* Shares set for best one-day pct gain in 15 months
(Adds details, CEO comment; updates shares)
May 10 Beauty products maker Coty Inc
reported higher-than-expected quarterly profit and sales, helped
by strong demand for labels such as Calvin Klein as well as for
recently acquired brands ghd and Younique.
Coty's shares rose as much as 15 percent to a near 6-month
high of $20.50 on Wednesday. They eased to trade up 13 percent,
set for their best one-day percentage gain since February 2016.
The company has inked multiple deals in the past year to
gain market share amid stiff competition and reduce its
dependence on its perfume business, that was once struggling.
In the past year Coty has bought more than 40 brands from
Procter & Gamble Co, the personal care and beauty
business of Brazil's Hypermarcas SA, a majority stake
in online cosmetics retailer Younique and also a high-end hair
styling appliance brand, ghd.
Coty said its third-quarter revenue rose 6 percent to $2.03
billion on a constant currency basis and after adjusting
year-ago sales for the P&G acquisition.
That beat analysts average estimate of $1.94 billion,
according to Thomson Reuters I/B/E/S.
Excluding acquisitions, sales declined 2 percent in constant
Coty, however, expects current-quarter net revenue,
excluding ghd and Younique, to be lower than the third quarter,
which Chief Executive Camillo Pane blamed on lost shelf space at
retailers for certain P&G brands.
Pane told Reuters the lost space will continue to hit
results for a few more quarters, until marketing efforts on
brands such as Covergirl, Max Factor and Clairol, which were
"orphaned" at P&G, pays off.
Pane said Brazil was a bright spot in the third quarter,
despite a recession, with sales rising in the double-digit
percentage range as Coty sold more nail polishes and hair
products that are affordable and recession-proof.
Coty's consumer beauty business saw sales increase 5
percent, reflecting strong contributions from Younique and one
month of sales from the Brazil Hypermarcas deal. The business
accounted for nearly half of total sales.
Sales in Coty's luxury business, which sells high-end
perfumes such as Calvin Klein and Hugo Boss, rose 2 percent.
Sales in the professional division rose 14 percent, driven
solely by ghd.
Net loss attributable to Coty increased to $164.2 million in
the quarter from $26.8 million a year earlier, due to $213.5
million in restructuring charges related to the P&G deal.
Coty's adjusted profit of 15 cents per share beat analysts'
estimate by 2 cents.
(Reporting by Karina Dsouza in Bengaluru; Editing by Savio