Core Viewpoint - Pomerantz LLP is investigating potential securities fraud and unlawful business practices involving Coty Inc. and its executives following disappointing financial results and guidance [1][3]. Financial Performance - On August 20, 2025, Coty reported an unexpected loss for its full fiscal year 2025 and fourth quarter, which was attributed to challenges in the beauty market, including consumer behavior and policy changes [3]. - The Chief Financial Officer of Coty indicated that sluggish sales were due to value-seeking behavior, innovation fatigue among consumers, and changes in anti-theft and immigration policies [3]. Stock Market Reaction - Following the announcement of the financial results, Coty's stock price dropped by $1.05 per share, representing a decline of 21.6%, closing at $3.81 per share on August 21, 2025 [4].

Core Viewpoint - Coty Inc. is under investigation for potential violations of federal securities laws, following disappointing financial results and claims of overstated demand for its Prestige fragrances [1][2][3]. Company Overview - Coty is a major player in the beauty industry, with a diverse portfolio that includes fragrance, color cosmetics, and skin and body care products. Prestige fragrances represent 60% of the company's revenue [2]. Financial Performance - On August 20, 2025, Coty reported disappointing financial results for Q4 and FY 2025, citing issues such as weaknesses in U.S. execution, retailer inventory buildup, and challenges from previous fiscal year innovations. The company noted a slowdown in cosmetics sales due to various factors, including consumer behavior and specific U.S. market conditions [3]. Stock Market Reaction - Following the release of the financial results, Coty's stock price fell by $1.05, a decline of over 21%, dropping from $4.86 to $3.81 per share within a day [3].

Coty Inc. (NYSE:COTY) Q4 2025 Earnings Q&A Conference Call August 21, 2025 8:00 AM ET Company Participants Laurent Mercier - Chief Financial Officer Sue Y. Nabi - CEO & Director Conference Call Participants Andrea Faria Teixeira - JPMorgan Chase & Co, Research Division Anna Jeanne Lizzul - BofA Securities, Research Division Christopher Michael Carey - Wells Fargo Securities, LLC, Research Division Olivia Tong Cheang - Raymond James & Associates, Inc., Research Division Stephen Robert R. Powers - Deutsche Ba ...

Core Viewpoint - Coty Inc. is under investigation for potential violations of federal securities laws, following disappointing financial results and claims of overstated demand for its Prestige fragrances [1][2][3]. Company Overview - Coty is one of the largest beauty companies globally, with a diverse portfolio that includes fragrance, color cosmetics, and skin and body care products. Prestige fragrances represent 60% of the company's revenues [2]. Financial Performance - On August 20, 2025, Coty reported disappointing financial results for Q4 and FY 2025, citing issues such as weaknesses in U.S. execution, retailer inventory buildup, and challenges from previous fiscal year innovations. The company noted a slowdown in cosmetics sales due to value-seeking behavior and U.S.-specific factors [3]. - Following the announcement of these results, Coty's stock price fell by $1.05 per share, a decline of over 21%, from $4.86 to $3.81 between August 20 and August 21, 2025 [3].

Financial Performance - Coty Inc. ended fiscal 2025 with adjusted EBITDA of $1.08 billion and a margin of 18.4%, reflecting a 60 basis points increase year over year, attributed to disciplined cost controls and productivity gains [1][9] - The All-In To Win program has delivered approximately $850 million in cumulative savings from fiscal 2021 to 2025, with a target of an additional $370 million over the next two years [2][9] Future Outlook - Management has guided for adjusted EBITDA declines in the first half of fiscal 2026, projecting a mid-to-high teens percentage decrease in the first quarter and a low-to-mid teens percentage decrease in the second quarter due to weaker sales and tariff impacts [3][4] - A turnaround is anticipated in the second half of fiscal 2026, supported by a return to sales momentum, major product launches, and benefits from tariff mitigation efforts [3][4] Market Position - Coty's shares have declined by 12.2% in the past month, underperforming the broader Consumer Staples sector, which saw a 3.4% decline, as well as the S&P 500 index's growth of 4.3% during the same period [5] - The stock currently trades at a forward 12-month P/E ratio of 9.28, significantly lower than the industry average of 27.9 and the sector average of 16.92, indicating a modest discount relative to peers [10]

Core Insights - Hagens Berman is investigating Coty Inc. following a 21% drop in its stock price due to "retailer inventory destocking issues" and weak financial results for Q4 and the full year [1][4]. Group 1: Investigation Details - The investigation focuses on whether Coty misled investors regarding its growth and the effectiveness of its digital inventory strategy, SAP S/4HANA [2][5]. - There are concerns that Coty may have shipped excess inventory to retail partners to obscure its own inventory buildup, which could mislead investors about its financial health [3][5]. Group 2: Financial Performance - The August 21 earnings report indicated a significant year-over-year revenue decline in Coty's Prestige and Consumer Beauty segments, which account for approximately 65% and 35% of total revenue, respectively [4]. - The company attributed its poor performance partly to retailer inventory issues that it had previously minimized [4]. Group 3: Legal and Investor Actions - Hagens Berman is urging investors who have suffered losses to come forward and assist in the investigation [2][6]. - The firm has a history of representing investors and has secured over $2.9 billion in similar cases [7].

Core Viewpoint - Coty Inc. is under investigation for potential violations of federal securities laws, following disappointing financial results and claims of overstated demand for its Prestige fragrances [1][2][3]. Group 1: Company Overview - Coty Inc. is one of the largest beauty companies globally, with a diverse portfolio that includes fragrance, color cosmetics, and skin and body care products [2]. - Prestige fragrances represent 60% of Coty's revenues, indicating a significant reliance on this segment [2]. Group 2: Financial Performance - On August 20, 2025, Coty reported disappointing financial results for Q4 and FY 2025, citing issues such as weaknesses in U.S. execution and retailer inventory buildup [3]. - The company's stock price fell by $1.05, a decline of over 21%, from $4.86 to $3.81 per share following the announcement of these results [3]. Group 3: Market Dynamics - Coty indicated that the slowdown in cosmetics sales was influenced by value-seeking consumer behavior, fatigue with innovation, and specific U.S. factors such as in-store security measures and immigration policy changes [3].

Group 1 - Berenberg has lowered the target price for Coty Inc. from $6.50 to $5.05 [1] - The rating for Coty Inc. has been downgraded from "Buy" to "Hold" [1]

Core Viewpoint - Pomerantz LLP is investigating claims of potential securities fraud or unlawful business practices involving Coty Inc. following disappointing financial results and guidance [1][3]. Financial Performance - On August 20, 2025, Coty reported an unexpected loss for its full fiscal year 2025 and fourth quarter, which led to a significant decline in stock price [3][4]. - The Chief Financial Officer attributed sluggish sales to various factors, including value-seeking behavior among consumers, innovation fatigue, and changes in anti-theft and immigration policies [3]. Stock Market Reaction - Following the announcement of the financial results, Coty's stock price dropped by $1.05 per share, representing a 21.6% decline, closing at $3.81 per share on August 21, 2025 [4].

Analyst Downgrades - Canaccord Genuity analyst Austin Moeller downgraded Bioceres Crop Solutions Corp. from Buy to Hold, lowering the price target from $6.5 to $2.5, with shares closing at $2.24 [6] - Compass Point analyst Floris Van Dijkum downgraded BXP, Inc. from Buy to Neutral, setting a price target of $75, with shares closing at $72.40 [6] - UBS analyst Manav Gupta downgraded Hess Midstream LP from Buy to Neutral, reducing the price target from $45 to $43, with shares closing at $40.70 [6] - Berenberg analyst Fulvio Cazzol downgraded Coty Inc. from Buy to Hold, lowering the price target from $6.5 to $5.05, with shares closing at $4.25 [6] - Evercore ISI Group analyst Amit Daryanani downgraded HP Inc. from Outperform to In-Line, maintaining a price target of $29, with shares closing at $29.04 [6]