Emma Asma Cornwall
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Emma Asma Cornwall in Gainers & Losers,

​Coty has more downside ahead

Coty Inc., the seller of Calvin Klein fragrance and Rimmel makeup, fell the most in three months after failing to provide investors with forecasts for performance after the company takes over Procter & Gamble Co.’s beauty brands.

The shares slipped as much as 8.6 percent to $27.18, the biggest intraday drop since May 3. The stock had gained 16 percent this year through Monday.

Coty is working to integrate more than 40 Procter & Gamble Co. beauty brands, including Gucci fragrances, CoverGirl cosmetics and Max Factor makeup. The $12.5 billion deal with P&G, announced in July 2015, is expected to turn Coty into the world’s third-largest cosmetics company when it closes in October. Coty then plans to divest a number of brands, including some fragrances, so it can focus on the key names. The company on Tuesday declined to discuss projections for the combined business, according to Bloomberg.

Looks like there's "head and shoulders" pattern on daily chart, and downside shouldn't be underestimated here