Why Natura &Co Stock Dropped 20% in Early Trading Today
Shares of cosmetics retailer Natura &Co (NYSE: NTCO), which owns the Avon, The Body Shop, Natura, and Aesop nameplates, fell sharply in the first 90 minutes of trading on Friday, dropping as much as 20%. The company's earnings release on Thursday, which hit Wall Street after it had shut for the day, was the main reason for the decline.
On the top line, Natura's revenue fell 4.2% year over year in the third quarter of 2021. However, that has to be taken with a grain of salt, because the company posted record sales in the third quarter of 2020. In other words, it was a very hard comparison, and falling only 4.2% could actually, perhaps, be viewed as a solid showing, noting that sales were still 20.7% higher than they were in the third quarter of 2019. However, given the steep drop in the price of the stock, it seems that investors are taking a glass-half-empty view today.
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Source Fool.com