Coty Inc., a beauty and fragrance company with a portfolio of well-known brands such as Calvin Klein, Davidoff, and Marc Jacobs updated its filing with the Securities and Exchange Commission (SEC), indicating that its revenue and income fell in the third quarter that ended September 30, 2012, according to a report from Wall Street Journal.
The beauty and fragrance company also warned that it might have violated the custom regulations of the United States by sending some of its products to Syria.
Coty’s latest filing, on Thursday, showed that its revenue declined by the 3 percent during the September quarter due to foreign exchange fluctuations and weak sales of its body and skin care products. According to the company, its operating income dropped by 32 percent to 165.9 million during the period. The company’s sales of its fragrance unit also dropped by 2 percent and its operating income declined by 12 percent due to cost increase.
In its filing, Coty also revealed that the company voluntarily admitted to U.S. regulators that its internal review found that the nature and quantity of certain exports of its products to Syria between January 2008 and March 2009 might have violated the U.S. Export Administration Regulations.
The company wrote, “OEE may conclude that our actions resulted in violations of U.S. export control law and warrant the imposition of penalties that could include fines, termination of our ability to export our products and/or referral for criminal prosecution.”
In addition, Coty said, “Based on the facts known to us to date, we do not believe fines or penalties assessed will be material.”
In June, last year, Coty filed for an initial public offering (IPO) to raise $700 million, after abandoning its proposal to acquire Avon Products, Inc. (NYSE:AVP) for $10.7 billion. The company delayed its IPO until the first quarter of this year to give more time for the newly appointed CEO, Michele Scannavini, to settle in and adjust to her role.
Last October, the Wall Street Journal cited that the company selected the New York Stock Exchange (NYSE) for its IPO. According to Dealogic, Coty’s $700 million IPO is the second largest SEC-registered offering on the active list.
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