Coty (COTY) and L’Oréal (LRLCY) are trading at higher valuation multiples relative to the S&P 500 Index (IVV)(SPY)(VOO) and the Dow Jones Industrial Average (DIA).
Beauty companies continue to expand into a multi-pronged digital strategy that encompasses e-commerce, m-commerce, as well as digital and social media.
Coty (COTY) reported a fall in its gross margin in fiscal 3Q16. Its reported gross margin came in at 61.2% in fiscal 3Q16 compared to 62.3% in fiscal 3Q15.
BIAHX fell 1.1% in 1Q16, ranking it third among the 12 funds in this review. In the past one year, the fund posted small gains of 0.2%, which again placed it third in its peer group.
Beauty companies’ revenues for 4Q15 conveyed mixed signals to investors. Although Procter & Gamble and Avon started the earnings season on a disappointing note with lower sales, Estée Lauder and Coty beat consensus Wall Street estimates.
From a NAV return standpoint, BIAHX stood third among its peers for the one-year period until March 15, 2016. Since the ECB announcement of stimulus measures, the fund is fifth.
France’s CPI (consumer price index) rose 0.3% in February. The CPI index for January stood at -1%. The rise in the CPI is a positive sign for the economy.
Estée Lauder’s skincare segment’s net revenue decreased 3.3% in reported terms and increased 2% on a constant-currency basis to $1.2 billion in fiscal 2Q16.
Coty (COTY) and L’Oréal (LRLCY) are trading at higher valuations relative to the S&P 500 Index (IVV) (SPY) (VOO) and the Dow Jones Industrial Average (DIA).
Let’s discuss Coty’s margins. It reported a slight improvement in the adjusted gross margin in fiscal 1Q16. This adjusted gross margin rose 70 basis points.
A rise in stocks after the European Central Bank’s announcement on January 21 provided a short-term boost to Europe-focused mutual funds (IEOAX) (UEPIX).
EON returned -40% in 2015, and its current price-to-earnings ratio is 17.8x. It’s trading 1% below its 100-day moving average. This was a storng resistance point.
On Friday, December 11, 2015, the stocks at the top of FEZ were Industria De Diseno, Sanofi (SNY), UniCredit, ING Groep, and L’Oréal. It’s worth noting that all these stocks had negative returns that day.
Interpublic Group’s (IPG) companies specialize in consumer advertising, digital marketing, communications planning and media buying, public relations, and specialized communications disciplines.
