Coty Reports In Line Q1 Results, with Q2 Sales Tracking Toward the More Favorable End of Prior Guidance; Expects a Return to Growth in 2H FY26 BOSS Bottled Beyond Success and Fragrance Mist Expansion Reinforce Global Fragrance & Scenting Leadership Executional Improvements Driving Q1 U.S. Prestige Fragrance Sell-Out In Line with Market "All In to Win" Program Continues to Deliver Efficiency, Agility and Cost Discipline Building Performance Improvement Plan for Consumer Beauty While Progressing with Strategi ...

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 Inc. 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, a decline of over 21%, from $4.86 to $3.81 per share [3].

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 retailer inventory buildup and execution weaknesses in the U.S. market [3]. - The company's stock price fell from $4.86 to $3.81 per share, a decline of over 21%, following the announcement of these results [3]. Group 3: Market Dynamics - Coty had previously claimed strong demand for its Prestige fragrances, but it appears that retailers were actually overstocked due to a decline in consumer demand [2]. - The company noted a slowdown in cosmetics sales attributed to value-seeking behavior among consumers and other U.S.-specific factors [3].

Core Insights - Coty Inc. has released its Fiscal Year 2025 (FY25) Sustainability Report, highlighting its commitment to sustainability and transparency in the beauty industry [1][2] - The report marks Coty's first under the EU Corporate Sustainability Reporting Directive (CSRD), emphasizing double materiality and improved data management [2] Sustainability Achievements - Coty reduced water withdrawal by 16%, aiming for a 25% reduction by 2030 compared to 2019 levels [4] - The company launched decarbonization targets for suppliers and received recognition on the CDP Supplier A List [4] - Coty introduced a new online resource for ingredient transparency, enhancing consumer access to information [4] Product Innovations - The company advanced eco-desirability with the introduction of BOSS The Scent's refillable and 17% lighter glass bottle, and the first refillable mascara under Max Factor [4] - Coty expanded its refillable fragrance portfolio and patented the Artcycling concept in the Netherlands, promoting circularity [4] Certifications and Recognitions - Achieved 99% FSC certification for folding box product packaging and secured 100% RSPO certification for palm oil sourcing [4] - Obtained Leaping Bunny approval for several brands, joining others in promoting cruelty-free products [4] - Received high ratings from various sustainability assessment organizations, including CDP (A-), MSCI (A), and Sustainalytics (Low Risk) [4]

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Coty, Inc. due to allegations of materially misleading business information issued by the company [1]. Group 1: Company Financial Performance - Coty disclosed its financial results for the full fiscal year of 2025 and its fourth quarter in a Current Report on Form 8-K filed on August 20, 2025 [3]. - The Chief Financial Officer of Coty attributed sluggish sales to several factors, including value-seeking behavior, innovation fatigue among consumers, and changes in anti-theft and immigration policies [3]. Group 2: Stock Market Reaction - Following the news of Coty's financial performance, the company's stock price fell by $1.05 per share, representing a decline of 21.6%, closing at $3.81 per share on August 21, 2025 [4]. Group 3: Legal Action and Investor Rights - Investors who purchased Coty securities may be entitled to compensation through a class action lawsuit being prepared by Rosen Law Firm, which operates on a contingency fee basis [2]. - The Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a successful track record in securities class actions [5].

NEW YORK--(BUSINESS WIRE)--Why: Rosen Law Firm, a global investor rights law firm, announces an investigation of potential securities claims on behalf of shareholders of Coty, Inc. (NYSE: COTY) resulting from allegations that Coty may have issued materially misleading business information to the investing public. So What: If you purchased Coty securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. The Rosen Law Fi. ...

Core Insights - Coty Inc. is under investigation for potential violations of federal securities laws, as announced by Bleichmar Fonti & Auld LLP [1][2] - The investigation arises amid concerns over Coty's reported demand for Prestige fragrances, which constitute 60% of its revenues, while actual retailer inventory levels suggest overstocking due to declining demand [2] Financial Performance - Coty reported disappointing financial results for Q4 and FY 2025, citing issues such as delays in identifying weaknesses in U.S. execution, retailer inventory buildup, and headwinds from previous fiscal year innovations [3] - The company's stock price fell by $1.05, a decline of over 21%, from $4.86 on August 20, 2025, to $3.81 on August 21, 2025, following the release of these results [3]

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. Prestige fragrances represent 60% of the company's revenues [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, retailer inventory buildup, and challenges from previous fiscal year innovations [3]. - The company's stock price fell by $1.05 per share, a decline of over 21%, from $4.86 on August 20, 2025, to $3.81 on August 21, 2025, following the announcement of these results [3]. Group 3: Market Dynamics - Coty indicated that retailers were maintaining tight inventory levels, while in reality, they were overstocked due to a decline in demand for Coty's products [2]. - The company experienced a slowdown in cosmetics sales attributed to value-seeking consumer behavior, fatigue with innovation, and specific U.S. factors such as in-store security measures and immigration policy changes [3].

Core Insights - Coty Inc. is set to lose the Gucci fragrance license in 2028 to L'Oréal, which has secured a 50-year exclusive license for Gucci's fragrance and beauty products [1][2] - Analysts predict that this loss could significantly impact Coty's financial performance, estimating a 12.5% dilution to total company EBITDA and a 14% dilution to the business excluding the Consumer Beauty assets currently for sale [3] Financial Impact - The Gucci license is estimated to represent approximately 10% of Coty's sales, equating to about $555 million, and around 12% of total adjusted EBITDA, approximately $121 million [5] - If Coty sells its Consumer brands, the Gucci license could account for a larger share, potentially around 14% of company sales and adjusted EBITDA [5] Strategic Considerations - Coty is currently focusing on balancing owned and licensed brands, with 76% of its portfolio being owned or under long-term licenses, while 14% of this is comprised of Gucci [6] - The expiration of the Gucci license poses challenges for Coty in maintaining its revenue and profitability, especially in the current business climate [6] Risk Assessment - Analysts from TD Securities estimate that the expiration of the Gucci license could lead to a negative earnings-per-share impact ranging from -4% to -19% annually for Coty [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 claimed strong demand for its Prestige fragrances, but evidence suggests that retailers were actually overstocked due to declining demand for Coty's products [2]. - The company faced a slowdown in cosmetics sales attributed to value-seeking consumer behavior and specific U.S. market challenges [3].