Coty Inc. (COTY) continues to adjust to a shifting landscape, as the exceptional growth in the beauty market over the recent years transitions to a more stabilized phase. Amid this shift, the company is battling several headwinds, from rising operational costs to struggles in key international markets.As a result, the stock fell 24.8% over the past three months, underperforming both the broader industry and the Zacks Consumer Staple sector, which saw declines of 14.7% and 7.5%, respectively. In contrast, th ...

At a time when many stocks are objectively and historically overvalued, many investors are wondering where they should put their investable capital in 2025. Some stocks that should attract your attention are trading for less than $10. These stocks allow investors to accumulate a significant number of shares for a nominal amount. However, as is the case with any stock, you have to be careful not to confuse price with value. Some stocks under $10 are cheap for a reason. And if the stock is overvalued, invest ...

The convergence of the beauty category with the health and wellness segment has increased the addressable market for all players, according to Goldman Sachs.Soft demand in China and channel disruptions in the U.S. have triggered a broad selloff in the beauty category year to date, "creating attractive stock-picking opportunities," analyst Patty Kanada said in the note.Kanada initiated coverage of two beauty stocks:The elf Beauty ThesisThe analyst initiated coverage of elf Beauty Inc ELF with a Buy rating an ...

Have you assessed how the international operations of Coty (COTY) performed in the quarter ended September 2024? For this beauty products company, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects. In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must under ...

After the market closed on November 6th, the management team at Coty (NYSE: COTY ), a company that operates as a major seller of fragrances, cosmetics, and a wide array of other beauty and self-care products, reported financial results covering the first quarterCrude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential.Subscribers get to use a 50+ stock ...

Coty Inc. (COTY) posted first-quarter fiscal 2025 results, with the top and bottom lines increasing year over year but missing the Zacks Consensus Estimate. The macroeconomic environment remains challenging, with the exceptional beauty market growth of recent years transitioning into a more normalized phase. However, consumers prioritize beauty spending, with fragrances remaining a top-performing category in the beauty industry. While Coty faces headwinds in markets like the Chinese mainland, Asia Travel Re ...

Financial Data and Key Metrics Changes - The first quarter net revenue grew 4.5% like-for-like, supported by solid growth in prestige fragrance, mass fragrance, and mass skin care, following an 18% like-for-like growth in the same quarter last year [20][36] - Adjusted gross margin increased by 200 basis points to 65.5%, driven by premiumization, pricing actions, and supply chain productivity [20][41] - Adjusted EBITDA was roughly flat year-over-year at $360 million, impacted by lower order patterns and strategic investments [22][41] - Adjusted diluted EPS excluding the equity swap was $0.18, reflecting a 20% year-over-year growth [22][41] - Free cash flow was slightly negative compared to over $100 million generated in Q1 of the previous year, due to tight order and inventory management [25][41] - Net debt at the end of Q1 was approximately $3.7 billion, with leverage at 3.4 times, down significantly from a year ago [26][41] Business Line Data and Key Metrics Changes - Prestige fragrances reported 7% like-for-like growth, with strong performance in the category [17][19] - Consumer beauty growth was flat, impacted by slightly negative volumes and inventory reductions in the U.S. mass channel [17][19] - Mass fragrances grew by over 20% in the quarter, contributing positively to the consumer beauty operating margin [51][59] - The mass color cosmetics segment showed flattish to slightly negative performance, particularly in the U.S. [12][19] Market Data and Key Metrics Changes - EMEA region saw high single-digit growth, while the Americas experienced mid-single-digit growth, and APAC faced a single-digit decline due to pressures in China [18][19] - Growth engine markets, accounting for approximately 21% of Q1 sales, grew strongly at 15% like-for-like [18][19] - Travel retail channel, which accounts for roughly 9% of Q1 sales, grew 4% like-for-like, driven by growth in the Americas and EMEA [19][59] Company Strategy and Development Direction - The company aims to adapt for future success in a dynamic market environment, with a focus on cost savings and operational efficiency [8][27] - Strategic initiatives include establishing centers of excellence, adapting the commercial organization for omnichannel, and maximizing benefits from emerging technologies and AI [29][32] - The company is committed to reducing share count and deleveraging towards targeted levels, with plans for active share buyback activity post-divestiture of Wella [24][41] Management's Comments on Operating Environment and Future Outlook - The beauty market is normalizing to a steadier growth level, with expectations of 3% to 4% like-for-like growth in the first half of fiscal 2025 [36][65] - The company anticipates continued gross margin expansion and EBITDA growth in the low to mid-single digits for the first half [36][41] - Management remains confident in the beauty industry's growth and Coty's ability to outperform, driven by robust fragrance category performance and expansion in under-indexed categories [66][68] Other Important Information - The company achieved significant ESG milestones, including a 65% reduction in Scope 3 air freight emissions compared to 2019 and a commitment to reduce water withdrawal by 25% by 2030 [61][62] - The company has met or surpassed its financial goals set three years ago, with significant improvements in gross margin and EBITDA margins [63][64] Q&A Session Summary Question: What is the outlook for the beauty market and Coty's performance? - The beauty market is expected to grow in the 3% to 4% range, with Coty anticipated to perform in line with this level despite disruptions in several markets [65][66] Question: How is Coty addressing the challenges in the U.S. market? - The company is adapting its strategies to manage inventory levels and respond to changes in consumer demand, particularly in the mass beauty segment [12][19][36]

Coty (COTY) reported $1.67 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 1.8%. EPS of $0.15 for the same period compares to $0.09 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.68 billion, representing a surprise of -0.33%. The company delivered an EPS surprise of -21.05%, with the consensus EPS estimate being $0.19.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ...

Coty (COTY) came out with quarterly earnings of $0.15 per share, missing the Zacks Consensus Estimate of $0.19 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -21.05%. A quarter ago, it was expected that this beauty products company would post earnings of $0.04 per share when it actually produced a loss of $0.03, delivering a surprise of -175%.Over the last four quarters, the compa ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER 001-35964 COTY INC. (Exact name of registrant as specified in its charter) Delaware 13-3823358 (State or other jurisdiction of i ...