Shares of beauty products firm Coty fell more than 8 percent Thursday after the firm's second-quarter earnings missed expectations.
The company, which owns brands such as Marc Jacobs, reported adjusted earnings of 30 cents per share, compared to the estimated 34 cents, according to a consensus of analysts polled by Thomson Reuters.
The second-quarter results are the company's first since completing a merger with P&G Beauty Brands in October last year, which brought brands such as CoverGirl under Coty's ownership.
In a release, Coty attributed the soft results to competitive pressure in the consumer beauty market and "distraction" from the process of merging with the P&G unit that resulted in unexpectedly high inventory levels.
The beauty products firm expects combined company revenue to decline at a slower rate during the second half of the year.
Coty is the third-largest personal care brand worldwide and famous for celebrity-endorsed perfumes. Its stock replaced Diamond Offshore Drilling in the S&P 500 beginning in October.
With Thursday's more than 8 percent decline, shares were just 0.2 percent higher for the year so far.