Coty Inc. (NYSE: COTY) reported its second quarter financial results on Friday and crushed analysts’ estimates. Shares skyrocketed at the open and continued to rise throughout the day, closing 32.15% higher.

For the quarter, Coty reported earnings of USD 24 cents per share on revenue of USD 2.51 Billion. Refinitiv analysts expected earnings of USD 22 cents per share on revenue of USD 2.47 Billion.

Despite the beat, Coty’s earnings and revenue both fell year. Revenue fell by 4.8% year-over-year, while earnings fell by 25% in the same period.

The revenue decline was partially offset by the gains in Coty’s luxury segment. The segment reported an increase of 7% in revenue to USD 1.01 Billion.

Consumer beauty revenue fell by 15% to USD 967.8 Million and its professional beauty segment reported revenue of 525.9 million, falling by 4% year-over-year.

"Since I joined the company a few months ago, I have been thoroughly evaluating each part of our business, working to assess what has and has not worked, and where the opportunities lie. Within Coty, there are clear opportunities to improve how we run our company in order to enhance the quality of our business model, thereby giving us the time that we need to address our more strategic issues. I must stress that while we are confident that we can return Coty to a path of sustainable growth, we are also realistic that it will take time to achieve this outcome. Our Luxury and Professional Beauty divisions are growing reasonably well, but they cannot compensate completely for the difficult trajectory of our Consumer Beauty division. In Consumer Beauty, we need to earn our right to grow.” said Pierre Laubies, Coty Chief Executive Officer.

As for the for the second half, Coty said it will be focusing on building a healthier business. The Company expects profit trend recovery in the second half of 2019. Coty projects fiscal 2019 constant currency adjusted operating income to be moderately below 2018, but expect positive free cash flow.