Group 1 - U.S. stock futures are lower, with Dow futures down approximately 100 points [1] - Coty Inc. reported mixed fourth-quarter fiscal results, with revenue of $1.25 billion, exceeding Wall Street estimates of $1.20 billion [1] - Coty posted an adjusted loss of 5 cents per share, missing analyst expectations for a profit of 2 cents per share [1] Group 2 - Coty shares fell 21.4% to $3.7900 in pre-market trading [2] - Canadian Solar Inc. shares decreased by 9.3% to $11.56 after disappointing second-quarter results and a cut in FY2025 sales guidance [4] - Shineco, Inc. shares declined 8.3% to $6.23 following a significant 37% increase the previous day [4] - Xunlei Limited shares dipped 5.1% to $6.95 after a 7% decline on Wednesday [4] - Rocket Pharmaceuticals, Inc. shares fell 5.1% to $3.56 after a 29% gain on Wednesday [4] - Telefónica, S.A. shares decreased by 4.5% to $5.45 in pre-market trading [4] - SuperX AI Technology Limited shares fell 3% to $31.85 after a 14% increase the previous day [4] - Bilibili Inc. shares dropped 2.8% to $24.60 following second-quarter results [4]

Financial Performance & Strategic Transformation - Coty's Prestige fragrance leadership has strengthened, with sales reaching approximately $3.5 billion in FY25, reflecting a Compound Annual Growth Rate (CAGR) of 10% from FY21 to FY25[3,6] - Consumer Beauty stabilized and grew, achieving approximately $2.1 billion in sales in FY25, with a CAGR of 2% from FY21 to FY25[7,8] - Adjusted EBITDA reached $1.082 billion in FY25, representing an 18.4% margin, and a CAGR of 9% from FY21 to FY25[10] - The company delivered approximately $850 million in savings over five years[34] Challenges & Outlook - Coty faced challenges in CY25, including U.S execution weakness, retailer inventory build-up, and headwinds from lapping FY24 innovation[14,16] - Underperformance in the U.S significantly impacted FY25 results, with Coty revenues declining by mid-single digits percent in the U.S Prestige Beauty market (market growth of +4%) and by mid-teens percent in the U.S Mass Beauty market (market decline of -1%)[17] - For 1H FY26, the company anticipates a LFL revenue decline of 6% to 8% in 1Q26 and a LFL revenue decline of 3% to 5% in 2Q26[43] - Coty expects approximately inline to below the Q4 level of ~3.5x leverage in CY25[43] Strategic Focus & Initiatives - Coty is refocusing on core strengths, particularly fragrances, which already account for over 60% of revenues[46,48] - The company's e-commerce revenues reached $1 billion in FY25[115] - Coty is implementing AI across various functions, including marketing, supply chain, and finance[86,89]

Core Viewpoint - Coty Inc. reported a significant decline in its stock price by over 15.4% following the release of its Q4 FY2025 earnings, which showed a year-over-year revenue drop of 8% to $1.25 billion, despite exceeding analyst expectations of $1.21 billion [1] Financial Performance - Revenue for Q4 FY2025 decreased by 8% to $1.25 billion, surpassing analyst expectations of $1.21 billion [1] - The consumer beauty segment experienced a 12% decline in sales, while the luxury segment, which includes brands like Kylie Cosmetics and Gucci, saw a 5% decrease [1] - Net loss narrowed from $96.9 million in the same period last year to $68.8 million, with an adjusted loss per share of $0.05, contrasting with analyst expectations of a $0.01 profit per share [1] Challenges Faced - The company faced multiple challenges during the fiscal year, including a weak U.S. market, retailer inventory destocking, and consumers seeking value [1] Future Outlook - For FY2026, Coty anticipates a same-store sales decline of 6% to 8% in Q1, followed by a 3% to 5% decline in Q2, before expecting a return to growth [1] - The company estimates facing approximately $70 million in tariff headwinds in the upcoming fiscal year due to current trade policies [1]

分组1 - Coty reported a quarterly loss of $0.05 per share, missing the Zacks Consensus Estimate of $0.01, and compared to a loss of $0.03 per share a year ago, representing an earnings surprise of -600.00% [1] - The company posted revenues of $1.25 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.07%, but down from $1.36 billion year-over-year [2] - Coty shares have declined approximately 29.7% since the beginning of the year, while the S&P 500 has gained 9% [3] 分组2 - The earnings outlook for Coty is uncertain, with current consensus EPS estimates at $0.18 on $1.61 billion in revenues for the coming quarter and $0.50 on $5.92 billion in revenues for the current fiscal year [7] - The Zacks Industry Rank indicates that the Cosmetics industry is currently in the bottom 24% of over 250 Zacks industries, which may negatively impact Coty's stock performance [8] - The estimate revisions trend for Coty was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6]

[Executive Summary & FY25/Q4 Highlights](index=1&type=section&id=Executive%20Summary%20%26%20FY25%2FQ4%20Highlights) Coty's CEO highlighted five years of transformation, achieving strong fragrance CAGR and outlining a multi-pronged plan for FY26 improvement [CEO's Remarks & Strategic Overview](index=1&type=section&id=CEO's%20Remarks%20%26%20Strategic%20Overview) Coty's CEO highlighted five years of transformation, achieving strong fragrance CAGR and outlining a multi-pronged plan for FY26 improvement - Coty achieved a **10% net revenue CAGR in Prestige fragrance sales** and **2% in Consumer Beauty sales** from FY21 through FY25[2](index=2&type=chunk) - Implemented a nimbler regional model with new U.S. leadership to address Prestige sell-out gaps[4](index=4&type=chunk) - Delivered **$140 million of productivity savings** in FY25 through the 'All-In to Win' strategy[4](index=4&type=chunk) - Achieved **$1 billion in e-commerce revenue** by embedding digital and e-commerce teams within markets and brands[4](index=4&type=chunk) - Accelerating AI adoption across demand planning, procurement, media allocation, marketing content, and back-office processes[4](index=4&type=chunk) - Strengthening competitive advantages by transferring mass fragrance and entry prestige fragrance production to the U.S. manufacturing plant[4](index=4&type=chunk) - FY25 adjusted EBITDA reached **$1,082 million with an 18.4% margin** (up 60 basis points), adjusted EPS (excluding equity swap) was **$0.50**, and free cash flow was approximately **$280 million**[5](index=5&type=chunk) - Fragrance LFL sales growth in FY25: **+9% in Ultra-Premium**, **+2% in Prestige**, and **+8% in Consumer Beauty fragrances**[6](index=6&type=chunk) - New blockbuster launch, Boss Bottled Beyond, is exceeding prior benchmarks, and a major push into affordable fragrance mists is underway[7](index=7&type=chunk) [Key Financial Highlights (FY25 & Q4)](index=2&type=section&id=Key%20Financial%20Highlights%20(FY25%20%26%20Q4)) FY25 net revenue declined 4% reported, with adjusted gross and EBITDA margins expanding, while Q4 saw a more significant revenue and margin decline FY25 Key Financial Highlights | Metric | FY25 Value | YoY Change (Reported) | YoY Change (LFL) | |:---|:---|:---|:---| | Net revenues | $5,892.9 million | (4%) | (2%) | | Prestige net revenue | $3,820.2 million | (1%) | Slightly positive | | Consumer Beauty net revenue | $2,072.7 million | (8%) | (5%) | | Reported gross margin | 64.8% | +40 bps | N/A | | Adjusted gross margin | 64.9% | +50 bps | N/A | | Reported operating income | $241.1 million | (56%) | N/A | | Adjusted operating income | $852.9 million | (1%) | N/A | | Reported net loss | $(381.1) million | <(100%) | N/A | | Reported EPS | $(0.44) | <(100%) | N/A | | Adjusted EPS | $0.22 | (41%) | N/A | | Adjusted EBITDA | $1,081.7 million | (1%) | N/A | | Adjusted EBITDA margin | 18.4% | +60 bps | N/A | | Cash flow from operating activities | $492.6 million | N/A | N/A | | Free cash flow | $277.6 million | N/A | N/A | Q4 FY25 Key Financial Highlights | Metric | Q4 FY25 Value | YoY Change (Reported) | YoY Change (LFL) | |:---|:---|:---|:---|\n| Net revenue | $1,252.4 million | (8%) | (9%) | | Prestige net revenue | $760.6 million | (5%) | (7%) | | Consumer Beauty net revenue | $491.8 million | (12%) | (12%) | | Reported & adjusted gross margin | 62.3% | (190 bps) | N/A | | Reported operating income | $15.5 million | (55%) | N/A | | Adjusted operating income | $67.7 million | (37%) | N/A | | Reported net loss | $(72.1) million | 28% | N/A | | Reported EPS | $(0.08) | 33% | N/A | | Adjusted EPS | $(0.05) | (67%) | N/A | | Adjusted EBITDA | $126.7 million | (23%) | N/A | | Adjusted EBITDA margin | 10.1% | (200 bps) | N/A | | Cash flow from operating activities | $83.2 million | N/A | N/A | | Free cash flow | $34.9 million | N/A | N/A | - FY25 reported operating results included a **$212.8 million non-cash asset impairment charge**, primarily related to the Consumer Beauty's color cosmetics business[13](index=13&type=chunk) - Total debt was **$4,008.4 million**, financial net debt was **$3,751.3 million**, and financial leverage ratio (net debt to adjusted EBITDA) was **3.5x** at quarter-end[14](index=14&type=chunk) [Detailed Financial Results](index=5&type=section&id=Detailed%20Financial%20Results) This section provides a comprehensive overview of Coty's FY25 and Q4 financial performance across consolidated statements, segments, regions, cash flow, and debt [Consolidated Statements of Operations (Reported vs. Adjusted)](index=5&type=section&id=Consolidated%20Statements%20of%20Operations%20(Reported%20vs.%20Adjusted)) FY25 net revenue declined 4% reported, with gross margin improving, while Q4 saw an 8% revenue decrease and gross margin contraction FY25 Net Revenues (Reported vs. LFL) | Segment | Reported Net Revenue | Reported YoY Change | LFL YoY Change | |:---|:---|:---|:---|\n| Total | $5,892.9 million | (4%) | (2%) | | Prestige | $3,820.2 million | (1%) | Slightly positive | | Consumer Beauty | $2,072.7 million | (8%) | (5%) | Q4 FY25 Net Revenues (Reported vs. LFL) | Segment | Reported Net Revenue | Reported YoY Change | LFL YoY Change | |:---|:---|:---|:---|\n| Total | $1,252.4 million | (8%) | (9%) | | Prestige | N/A | (5%) | (7%) | | Consumer Beauty | N/A | (12%) | (12%) | Gross Margin Performance | Metric | FY25 | Q4 FY25 | |:---|:---|:---|\n| Reported Gross Margin | 64.8% (up 40 bps YoY) | 62.3% (down 190 bps YoY) | | Adjusted Gross Margin | 64.9% (up 50 bps YoY) | 62.3% (down 190 bps YoY) | Operating Income (Reported vs. Adjusted) | Metric | FY25 Reported | FY25 Adjusted | Q4 FY25 Reported | Q4 FY25 Adjusted | |:---|:---|:---|:---|:---|\n| Operating Income | $241.1M | $852.9M | $15.5M | $67.7M | | Operating Income YoY Change | (56%) | (1%) | (55%) | (37%) | | Operating Margin | 4.1% | 14.5% (up 40 bps) | 1.2% | 5.4% (down 250 bps) | Net Income & EPS (Reported vs. Adjusted) | Metric | FY25 Reported | FY25 Adjusted | Q4 FY25 Reported | Q4 FY25 Adjusted | |:---|:---|:---|:---|:---|\n| Net Income (Loss) | $(381.1)M | $188.8M | $(72.1)M | $(44.9)M | | Net Income (Loss) Margin | (6.5%) | 3.2% | (5.8%) | (3.6%) | | EPS (Diluted) | $(0.44) | $0.22 | $(0.08) | $(0.05) | Adjusted EBITDA | Metric | FY25 | Q4 FY25 | |:---|:---|:---|\n| Adjusted EBITDA | $1,081.7M | $126.7M | | Adjusted EBITDA YoY Change | (1%) | (23%) | | Adjusted EBITDA Margin | 18.4% (up 60 bps) | 10.1% (down 200 bps) | [Segment Performance](index=7&type=section&id=Segment%20Performance) Prestige revenue was slightly positive LFL with margin expansion, while Consumer Beauty declined significantly with margin contraction FY25 Segment Net Revenue & Operating Income | Segment | Net Revenue (FY25) | Reported YoY Change | LFL YoY Change | Reported Operating Income (FY25) | Adjusted Operating Income (FY25) | |:---|:---|:---|:---|:---|:---|\n| Prestige | $3,820.2M (65% of total) | (1%) | Slightly positive | $580.6M | $773.2M | | Prestige YoY Change | N/A | N/A | N/A | 0% | up 5% | | Consumer Beauty | $2,072.7M (35% of total) | (8%) | (5%) | $(127.4)M | $79.7M | | Consumer Beauty YoY Change | N/A | N/A | N/A | <(100%) | down 38% | Q4 FY25 Segment Net Revenue & Operating Income | Segment | Net Revenue (Q4 FY25) | Reported YoY Change | LFL YoY Change | Reported Operating Income (Q4 FY25) | Adjusted Operating Income (Q4 FY25) | |:---|:---|:---|:---|:---|:---|\n| Prestige | $760.6M (61% of total) | (5%) | (7%) | $38.1M | $74.7M | | Prestige YoY Change | N/A | N/A | N/A | down 23% | down 15% | | Consumer Beauty | $491.8M (39% of total) | (12%) | (12%) | $(16.0)M | $(7.0)M | | Consumer Beauty YoY Change | N/A | N/A | N/A | <(100%) | <(100%) | FY25 Segment Adjusted Operating & EBITDA Margins | Segment | Adjusted Operating Margin (FY25) | Adjusted EBITDA Margin (FY25) | |:---|:---|:---|\n| Prestige | 20.2% (up 120 bps YoY) | 23.2% (up 140 bps YoY) | | Consumer Beauty | 3.8% (down 190 bps YoY) | 9.5% (down 160 bps YoY) | Q4 FY25 Segment Adjusted Operating & EBITDA Margins | Segment | Adjusted Operating Margin (Q4 FY25) | Adjusted EBITDA Margin (Q4 FY25) | |:---|:---|:---|\n| Prestige | 9.8% (down 110 bps YoY) | 13.5% (down 60 bps YoY) | | Consumer Beauty | (1.4%) (down 500 bps YoY) | 4.8% (down 430 bps YoY) | [Regional Performance](index=8&type=section&id=Regional%20Performance) Americas and Asia Pacific revenues declined in FY25, while EMEA saw modest growth, reflecting varied regional market dynamics FY25 Regional Net Revenue Performance | Region | Net Revenue (FY25) | Reported YoY Change | LFL YoY Change | |:---|:---|:---|:---|\n| Americas | $2,373.0M (40% of total) | (8%) | (3%) (incl. 2% from Argentina) | | EMEA | $2,811.8M (48% of total) | 1% | 1% | | Asia Pacific | $708.1M (12% of total) | (8%) | (7%) | Q4 FY25 Regional Net Revenue Performance | Region | Net Revenue (Q4 FY25) | Reported YoY Change | LFL YoY Change | |:---|:---|:---|:---|\n| Americas | $511.2M | (12%) | (10%) (incl. 1% from Argentina) | | EMEA | $574.2M | (4%) | (9%) | | Asia Pacific | $167.0M | (8%) | (9%) | - Americas sales were impacted by lower Prestige net revenue due to elevated comparisons and proactive inventory rightsizing, and lower Consumer Beauty net revenue in the U.S. due to ongoing weakness in mass color cosmetics[44](index=44&type=chunk) - EMEA decline in Q4 was driven by lower Prestige net revenue due to inventory rightsizing and lower Consumer Beauty net revenue[45](index=45&type=chunk) - Coty's sell-out performance in almost all Asia markets excluding China grew nearly **4x ahead of the market** in Q4, with strong double-digit percentage sell-out in fragrance and skincare[46](index=46&type=chunk) [Cash Flow & Debt](index=7&type=section&id=Cash%20Flow%20%26%20Debt) FY25 operating and free cash flow decreased, while total debt increased, raising the financial leverage ratio to 3.5x Cash Flow Performance | Metric | FY25 | Q4 FY25 | |:---|:---|:---|\n| Cash flow from operating activities | $492.6M (down from $614.6M YoY) | $83.2M (down from $176.5M YoY) | | Free cash flow | $277.6M (down from $369.4M YoY) | $34.9M (down from $116.7M YoY) | Debt Metrics (as of June 30, 2025) | Metric | Value | |:---|:---|\n| Total debt | $4,008.4 million | | Financial net debt | $3,751.3 million | | Financial leverage ratio (net debt to adjusted EBITDA) | 3.5x (up from 3.2x QoQ) | | Value of Wella stake | $1,002.0 million | | Economic net debt | $2,749.3 million | [Strategic Updates & Outlook](index=4&type=section&id=Strategic%20Updates%20%26%20Outlook) Coty outlines its strategic priorities, product pipeline for FY26 and beyond, and financial guidance, anticipating a return to LFL growth in 2H FY26 [Strategic Priorities](index=3&type=section&id=Strategic%20Priorities) Coty prioritizes leveraging global fragrance leadership, expanding into profitable beauty categories, and improving mass color cosmetics profitability - Prioritize and leverage leadership in global fragrances, which are **over 60% of revenues** and a larger portion of profits[16](index=16&type=chunk) - Continue to grow Coty's footprint in a limited number of structurally profitable and growing beauty categories and geographic markets[16](index=16&type=chunk) - Focus on scenting and fragrances across the price spectrum from **$5 to $500**, including licensed brands[18](index=18&type=chunk) - Steadily build the skincare business while remaining vigilant with investment levels[21](index=21&type=chunk) - Improve profitability of the mass color cosmetics platform[21](index=21&type=chunk) [Product Pipeline for FY26 and Beyond](index=4&type=section&id=Product%20Pipeline%20for%20FY26%20and%20Beyond) The FY26 product pipeline includes major Prestige launches like Boss Bottled Beyond and multi-brand fragrance mists, alongside Consumer Beauty innovations - Prestige: Currently launching new blockbuster Boss Bottled Beyond globally, with early trends tracking ahead of Burberry Goddess (FY24 blockbuster)[25](index=25&type=chunk) - Prestige: Broader extension of the Hugo Boss brand into the U.S. market[25](index=25&type=chunk) - Prestige: Multi-brand push into the rapidly growing fragrance mist category, including Calvin Klein and philosophy[25](index=25&type=chunk) - Prestige: Blockbuster launch under another flagship Coty brand planned in 2H FY26[25](index=25&type=chunk) - Prestige: Launched Marc Jacobs on Amazon Premium Beauty Store in Q1 FY26; Marc Jacobs Beauty makeup expected to debut in CY26[25](index=25&type=chunk) - Prestige: Swarovski fragrance targeted to launch in CY27[25](index=25&type=chunk) - Consumer Beauty: Launching new innovations under key mass fragrance brands (adidas, Nautica, Vera Wang, bruno banani)[25](index=25&type=chunk) - Consumer Beauty: Rolling out new in-house developed fragrance lines, including the Origen collection exclusively at Walmart[25](index=25&type=chunk) - Consumer Beauty: Expanded into scenting adjacencies with hair & body mists under adidas Vibes and Nautica[25](index=25&type=chunk) - Consumer Beauty: Capitalizing on Lip subcategory momentum with CoverGirl's Yummy Blur lipstick and Rimmel's Oh My Gloss! Butter Me Up[25](index=25&type=chunk) - Consumer Beauty: Launching new cosmetics embellisher offerings like Rimmel's Multi-Tasker Jelly Crush and CoverGirl's TruBlend Skin Enhancer Balms[25](index=25&type=chunk) [FY26 Outlook & Guidance](index=4&type=section&id=FY26%20Outlook%20%26%20Guidance) Coty forecasts gradual sales improvement in FY26, with LFL growth returning in 2H, alongside 1H margin pressure and a focus on deleveraging - Expects a gradual improvement in LFL sales trends through FY26, returning to growth in 2H FY26[27](index=27&type=chunk) FY26 LFL Sales Guidance | Period | LFL Sales Decline | |:---|:---|\n| 1Q26 | 6% to 8% | | 2Q26 | 3% to 5% | | 2H FY26 | Return to growth | - Anticipates low single-digit percentage FX benefit in 1H FY26 reported revenue[28](index=28&type=chunk) - Expects 1H FY26 gross margin pressure from lower sales and net impact from tariffs, with tariff mitigation contributing more meaningfully in 2H FY26[29](index=29&type=chunk) FY26 Adjusted EBITDA Guidance | Period | Adjusted EBITDA Change | |:---|:---|\n| 1Q26 | Mid-to-high teens percentage decline | | 2Q26 | Low-to-mid teens percentage decline | | 2H FY26 | Return to growth | - 1H FY26 adjusted EPS expected to decline high single-digit to mid-teen percentage to **$0.33-$0.36**, with adjusted EPS growth in 2H FY26[30](index=30&type=chunk) - Estimates seasonally stronger free cash flow of **over $350 million** in 1H FY26[31](index=31&type=chunk) - Targets leverage at end of CY25 approximately in line with or below 4Q25 level of **~3.5x**, with a focus on deleveraging over CY26 and beyond to achieve an investment grade profile[31](index=31&type=chunk) [Corporate Information & Disclosures](index=9&type=section&id=Corporate%20Information%20%26%20Disclosures) This section provides essential corporate details, including company developments, investor relations contacts, company overview, forward-looking statements, and non-GAAP financial measure explanations [Noteworthy Company Developments](index=9&type=section&id=Noteworthy%20Company%20Developments) Coty hosted a Cultural Tastemakers Series event at Maison Orveda, featuring Marc Jacobs and Bridget Foley, celebrating artistry and innovation - Coty hosted Marc Jacobs and Bridget Foley at Maison Orveda for a Cultural Tastemakers Series event[47](index=47&type=chunk) [Conference Call & Investor Relations](index=9&type=section&id=Conference%20Call%20%26%20Investor%20Relations) Coty Inc. will release Q4/FY25 results via pre-recorded remarks and a live Q&A session in August 2025 - Pre-recorded remarks for Q4/FY25 results available August 20, 2025, with a live Q&A session on August 21, 2025[48](index=48&type=chunk) - Investor Relations contact: Olga Levinzon, olga_levinzon@cotyinc.com, **+1 212 389-7733**[49](index=49&type=chunk) - Media contact: Antonia Werther, antonia_werther@cotyinc.com, **+31 621 394495**[49](index=49&type=chunk) [About Coty Inc.](index=9&type=section&id=About%20Coty%20Inc.) Coty, a global beauty company founded in 1904, offers iconic brands across fragrance, cosmetics, and skincare in over 120 countries - Coty, founded in Paris in 1904, is one of the world's largest beauty companies[49](index=49&type=chunk) - Portfolio includes iconic brands across fragrance, color cosmetics, and skin and body care[49](index=49&type=chunk) - Sells prestige and mass market products in over 120 countries and territories[49](index=49&type=chunk) - Committed to empowering self-expression and protecting the planet[49](index=49&type=chunk) [Forward-Looking Statements](index=10&type=section&id=Forward-Looking%20Statements) This section details forward-looking statements on Coty's strategy and financials, subject to risks and uncertainties that may alter actual results - Forward-looking statements reflect current views on strategic planning, financial targets, future operations, and cost efficiency[50](index=50&type=chunk) - Statements are subject to risks and uncertainties, including the ability to implement strategic priorities, respond to market trends, manage operational and financial risks, and adapt to global economic and political changes[50](index=50&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk) - The company does not undertake any obligation to update or revise forward-looking statements, except as required by law[55](index=55&type=chunk) [Non-GAAP Financial Measures Explanation](index=13&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) Coty utilizes non-GAAP measures like Adjusted EBITDA and Free Cash Flow, excluding specific items, to supplement GAAP results and enhance performance understanding - Non-GAAP measures (Adjusted operating income, Adjusted EBITDA, Adjusted net income, Free cash flow) are used to supplement GAAP financial measures[57](index=57&type=chunk) - These measures exclude items like restructuring costs, amortization, acquisition/divestiture-related costs, stock-based compensation, and asset impairment charges[60](index=60&type=chunk)[63](index=63&type=chunk) - Management uses Adjusted Performance Measures for evaluating performance, annual budgets, benchmarking, and financial covenant compliance[58](index=58&type=chunk)[61](index=61&type=chunk) - Free cash flow is defined as net cash provided by operating activities less capital expenditures[64](index=64&type=chunk) - Adjusted EBITDA is defined as adjusted operating income, excluding adjusted depreciation and non-cash stock-based compensation[64](index=64&type=chunk) - Financial Net Debt is total debt less cash and cash equivalents; Economic Net Debt further subtracts the value of the Wella Stake[64](index=64&type=chunk) - Constant currency information is provided to assess underlying business performance excluding foreign currency exchange translations[65](index=65&type=chunk)[66](index=66&type=chunk) [Supplemental Schedules & Reconciliations](index=17&type=section&id=Supplemental%20Schedules%20%26%20Reconciliations) This section provides detailed GAAP to non-GAAP reconciliations and supplemental schedules for revenues, operating income, and EBITDA by segment and region Q4 FY25 & FY25 Net Revenues by Segment | Segment | Q4 FY25 Net Revenues | Q4 FY25 Reported Change | Q4 FY25 LFL Change | FY25 Net Revenues | FY25 Reported Change | FY25 LFL Change | |:---|:---|:---|:---|:---|:---|:---|\n| Prestige | $760.6M | (5%) | (7%) | $3,820.2M | (1%) | 0% | | Consumer Beauty | $491.8M | (12%) | (12%) | $2,072.7M | (8%) | (5%) | | Total | $1,252.4M | (8%) | (9%) | $5,892.9M | (4%) | (2%) | Q4 FY25 & FY25 Adjusted EBITDA by Segment | Segment | Q4 FY25 Adjusted EBITDA | Q4 FY25 Adjusted EBITDA Margin | FY25 Adjusted EBITDA | FY25 Adjusted EBITDA Margin | |:---|:---|:---|:---|:---|\n| Prestige | $102.9M | 13.5% | $884.6M | 23.2% | | Consumer Beauty | $23.8M | 4.8% | $197.1M | 9.5% | | Total | $126.7M | 10.1% | $1,081.7M | 18.4% | Q4 FY25 & FY25 Net Revenues by Region | Region | Q4 FY25 Net Revenues | Q4 FY25 Reported Change | Q4 FY25 LFL Change | FY25 Net Revenues | FY25 Reported Change | FY25 LFL Change | |:---|:---|:---|:---|:---|:---|:---|\n| Americas | $511.2M | (12%) | (10%) | $2,373.0M | (8%) | (3%) | | EMEA | $574.2M | (4%) | (9%) | $2,811.8M | 1% | 1% | | Asia Pacific | $167.0M | (8%) | (9%) | $708.1M | (8%) | (7%) | | Total | $1,252.4M | (8%) | (9%) | $5,892.9M | (4%) | (2%) | FY25 & Q4 FY25 Consolidated Statements of Operations (GAAP) | Metric | Q4 FY25 | Q4 FY24 | FY25 | FY24 | |:---|:---|:---|:---|:---|\n| Net revenues | $1,252.4M | $1,363.4M | $5,892.9M | $6,118.0M | | Gross profit | $779.7M | $875.4M | $3,820.9M | $3,939.2M | | Gross margin | 62.3% | 64.2% | 64.8% | 64.4% | | Operating income | $15.5M | $34.7M | $241.1M | $546.7M | | Net (loss) income attributable to common stockholders | $(72.1)M | $(100.2)M | $(381.1)M | $76.2M | | Diluted EPS | $(0.08) | $(0.12) | $(0.44) | $0.09 | FY25 & Q4 FY25 Reconciliation of Reported to Adjusted Results | Metric | Q4 FY25 Reported | Q4 FY25 Adjusted | FY25 Reported | FY25 Adjusted | |:---|:---|:---|:---|:---|\n| Net revenues | $1,252.4M | $1,252.4M | $5,892.9M | $5,892.9M | | Gross profit | $779.7M | $779.7M | $3,820.9M | $3,825.2M | | Gross margin | 62.3% | 62.3% | 64.8% | 64.9% | | Operating income | $15.5M | $67.7M | $241.1M | $852.9M | | Net loss attributable to common stockholders | $(72.1)M | $(44.9)M | $(381.1)M | $188.8M | | Adjusted EBITDA | N/A | $126.7M | N/A | $1,081.7M | | EPS (diluted) | $(0.08) | $(0.05) | $(0.44) | $0.22 | FY25 & Q4 FY25 Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow | Metric | Q4 FY25 | Q4 FY24 | FY25 | FY24 | |:---|:---|:---|:---|:---|\n| Net cash provided by operating activities | $83.2M | $176.5M | $492.6M | $614.6M | | Capital expenditures | $(48.3)M | $(59.8)M | $(215.0)M | $(245.2)M | | Free cash flow | $34.9M | $116.7M | $277.6M | $369.4M | Reconciliation of Total Debt to Financial Net Debt and Economic Net Debt (June 30, 2025) | Metric | Value | |:---|:---|\n| Total debt | $4,008.4M | | Less: Cash and cash equivalents | $257.1M | | Financial Net debt | $3,751.3M | | Less: Value of Wella stake | $1,002.0M | | Economic Net debt | $2,749.3M | [Condensed Consolidated Balance Sheets](index=28&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets slightly decreased, total liabilities increased due to higher debt, and total equity declined Condensed Consolidated Balance Sheets (June 30, 2025 vs. 2024) | Asset/Liability | June 30, 2025 (in millions) | June 30, 2024 (in millions) | |:---|:---|:---|\n| **ASSETS:** | | | | Total current assets | $1,953.3 | $1,963.5 | | Property and equipment, net | $709.2 | $718.9 | | Goodwill | $4,062.2 | $3,905.7 | | Other intangible assets, net | $3,214.8 | $3,565.6 | | Equity investments | $1,002.0 | $1,090.6 | | TOTAL ASSETS | $11,907.7 | $12,082.5 | | **LIABILITIES & EQUITY:** | | | | Total current liabilities | $2,538.3 | $2,601.8 | | Long-term debt, net | $3,955.5 | $3,841.8 | | TOTAL LIABILITIES | $7,952.1 | $7,834.8 | | Total Coty Inc. stockholders' equity | $3,542.7 | $3,827.1 | | Total equity | $3,719.0 | $4,011.7 | | TOTAL LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY | $11,907.7 | $12,082.5 | [Condensed Consolidated Statements of Cash Flows](index=29&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) FY25 operating cash flow decreased, investing cash outflow lessened, and financing cash outflow increased due to debt and repurchases Condensed Consolidated Statements of Cash Flows (FY25 vs. FY24) | Cash Flow Category | FY25 (in millions) | FY24 (in millions) | |:---|:---|:---|\n| Net (loss) income | $(350.2) | $109.4 | | Net cash provided by operating activities | $492.6 | $614.6 | | Net cash used in investing activities | $(128.4) | $(226.2) | | Net cash used in financing activities | $(426.8) | $(336.7) | | Effect of exchange rates on cash, cash equivalents and restricted cash | $12.4 | $(14.9) | | Net (decrease) increase in cash, cash equivalents and restricted cash | $(50.2) | $36.8 | | Cash, cash equivalents and restricted cash—End of period | $270.4 | $320.6 |

Coty Inc. COTY will release financial results for the fourth quarter after the closing bell on Wednesday, Aug. 20. Analysts expect the New York-based company to report quarterly earnings at 2 cents per share, versus a year-ago loss of 3 cents per share. Coty projects to report quarterly revenue at $1.21 billion, compared to $1.36 billion a year earlier, according to data from Benzinga Pro. On May 6, Coty reported worse-than-expected third-quarter financial results and cut its FY25 adjusted EPS guidance. Let ...

Financial Data and Key Metrics Changes - Fiscal year 2025 net revenues declined by 2% like for like, with Q4 revenues declining by 9% [17] - EBITDA grew at a CAGR of 9% from CHF 760 million in fiscal year 2021 to CHF 1.08 billion in fiscal year 2025, with an EBITDA margin expansion of 190 basis points to 18.4% [8][21] - Adjusted EPS for fiscal year 2025 was $0.50, reflecting a 4% growth despite lower operating income [22] - Free cash flow for fiscal year 2025 was CHF 278 million, slightly below the target of CHF 300 million [22] Business Line Data and Key Metrics Changes - Prestige Fragrance business grew to a £3.5 billion segment with a CAGR of 10% from fiscal year 2021 to fiscal year 2025 [6] - Consumer Beauty business achieved a 2% CAGR from fiscal year 2021 to fiscal year 2025, recovering from previous declines [7] - In Q4, Prestige sellout grew low single digits, while Consumer Beauty sellout declined high single digits against a modestly positive market [20] Market Data and Key Metrics Changes - The U.S. Prestige beauty market grew by approximately 4% in fiscal year 2025, but the company experienced a mid-single-digit percentage decline in like-for-like sales [13] - The mass beauty market in the U.S. declined by roughly 1% in fiscal year 2025, with the company's like-for-like sales declining by a mid-teen percentage [13] - In Asia, excluding China, sellout grew approximately four times ahead of market growth [58] Company Strategy and Development Direction - The company is refocusing on core strengths in fragrances, which represent over 60% of revenues, and aims to drive growth in structurally profitable beauty categories [36][37] - A strategic shift is underway to prioritize investment in high-return areas while rebalancing resources away from less profitable segments like mass cosmetics [45][66] - The company is implementing the "All in to Win" program to deliver CHF 130 million in annual fixed cost savings through fiscal year 2027 [23] Management's Comments on Operating Environment and Future Outlook - The management acknowledged challenges in fiscal year 2025, including retailer inventory buildup and execution weaknesses, which impacted performance [11] - There is an expectation of sequential improvement in sales and profit trends in fiscal year 2026, with a return to growth anticipated in the second half [30][73] - The company is actively preparing for multiple scenarios regarding tariffs and geopolitical uncertainties, with mitigation strategies in place [29][25] Other Important Information - The company has received 12 consecutive debt rating upgrades, positioning it just one notch below investment grade [9] - The company is committed to sustainability, achieving a Grand EcoVadis rating placing it in the top 5% of companies globally for sustainability performance [71] Q&A Session Summary Question: What are the expectations for sales trends in fiscal year 2026? - The company anticipates a like-for-like decline of 6% to 8% in Q1 and a decline of 3% to 5% in Q2, with sequential improvement expected throughout the year [31] Question: How is the company addressing the challenges in the U.S. market? - The company is taking decisive actions, including new leadership and a more agile regional structure, to address underperformance in the U.S. market [58] Question: What are the key initiatives for cost savings? - The company is targeting approximately CHF 200 million in combined fixed costs and productivity savings in fiscal year 2026 [50]

Core Insights - Coty's upcoming quarterly earnings report is projected to show earnings of $0.01 per share, reflecting a significant increase of 133.3% year-over-year, despite an anticipated revenue decline of 11.7% to $1.2 billion [1] Earnings Projections - There has been an 8.6% upward revision in the consensus EPS estimate over the last 30 days, indicating analysts' reassessment of their forecasts [2] - Changes in earnings projections are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock price movements [3] Revenue Estimates - Analysts estimate 'Net Revenues- Prestige' to be $721.85 million, representing a year-over-year decline of 10.1% [5] - The 'Net Revenues- Consumer Beauty' is projected at $477.45 million, indicating a year-over-year decrease of 14.8% [5] Operating Income Estimates - The consensus for 'Adjusted Operating Income (Loss)- Prestige' is $76.95 million, down from $87.80 million reported in the same quarter last year [5] - For 'Adjusted Operating Income (Loss)- Consumer Beauty', analysts predict a loss of -$1.36 million, a significant drop from the $20.20 million reported in the previous year [6] Stock Performance - Coty shares have increased by 1% over the past month, compared to a 3.3% rise in the Zacks S&P 500 composite [6] - With a Zacks Rank of 3 (Hold), Coty is expected to closely follow overall market performance in the near term [6]

Core Insights - Coty Inc. is expected to report a decline in revenue for the fourth quarter of fiscal 2025, with the Zacks Consensus Estimate at $1.2 billion, reflecting a 12% decrease from the previous year [1] - The earnings consensus has remained stable at two cents per share, indicating a recovery from a loss of three cents in the same quarter last year [2] - Coty's strategic initiatives, including expanding its prestige fragrance portfolio and enhancing digital capabilities, are anticipated to support performance despite challenges [3][4] Revenue and Earnings Performance - The fragrance segment continues to be a key revenue driver for Coty, with management focused on optimizing the cost structure [4] - However, the company faces significant challenges in markets such as China, Travel Retail Asia, and U.S. Consumer Beauty, with expected organic LFL revenue decline of 9.3% for the fourth quarter [5] - Higher advertising and promotional spending, along with currency headwinds, are likely to negatively impact the upcoming quarter's results [5][10] Earnings Predictions - The current model does not predict an earnings beat for Coty, with an Earnings ESP of 0.00% and a Zacks Rank of 3 [6] - Comparatively, other companies like Estée Lauder are also expected to see declines in both revenue and earnings, with a consensus revenue estimate of $3.4 billion, down 12.2% year-over-year [8]

Investors interested in stocks from the Cosmetics sector have probably already heard of Coty (COTY) and Estee Lauder (EL) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look. Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate ...