Coty (COTY) reported $1.3 billion in revenue for the quarter ended March 2025, representing a year-over-year decline of 6.2%. EPS of $0.01 for the same period compares to $0.05 a year ago.The reported revenue represents a surprise of -0.43% over the Zacks Consensus Estimate of $1.3 billion. With the consensus EPS estimate being $0.05, the EPS surprise was -80.00%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next ...

Coty (COTY) came out with quarterly earnings of $0.01 per share, missing the Zacks Consensus Estimate of $0.05 per share. This compares to earnings of $0.05 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -80%. A quarter ago, it was expected that this beauty products company would post earnings of $0.22 per share when it actually produced earnings of $0.11, delivering a surprise of -50%.Over the last four quarters, the company ...

Coty Reports Q3 Results And Shares Multi-Pronged Plan of Attack to Fuel Momentum in FY26 and Beyond 2025 remains a transition year for Coty. In Prestige, we are absorbing the triple-headwind of a slowing fragrance market, lapping a blockbuster innovation year, and depleting elevated retailer inventory, all of which was particularly acute in the U.S. We are laser focused on entering FY26 with alignment between sell-in and sell-out, to create a healthy baseline for growth. In Consumer Beauty, we have begun re ...

Core Viewpoint - Coty Inc. is expected to report a decline in revenues for the third quarter of fiscal 2025, with estimates at $1.3 billion, reflecting a 5.8% decrease from the previous year [1] Revenue and Earnings Estimates - The consensus estimate for earnings has decreased by one cent to 5 cents per share, consistent with the same quarter last year [2] - Coty has experienced a trailing four-quarter negative earnings surprise averaging 65.7% [2] Business Challenges - Coty is facing significant challenges in key markets, including China, Travel Retail Asia, Australia, and Consumer Beauty in the U.S., with expectations of continued pressure into the upcoming quarter [2] - Organic like-for-like revenues are anticipated to decline by 1.5% for the third quarter of fiscal 2025 [2] Currency and Cost Pressures - Currency headwinds are expected to impact results, with a projected foreign exchange headwind of approximately 3% to 4% in the second half of the fiscal year [3] - Increased advertising and consumer promotions (A&CP) spending has been noted, with A&CP costs remaining in the high 20s percentage-wise, which may further affect margins and profitability [4] Strategic Initiatives - Despite challenges, Coty's strategic priorities, such as expanding its prestige fragrance portfolio and enhancing digital and direct-to-consumer capabilities, are expected to support performance and margin resilience [5] Earnings Prediction - The current model does not predict an earnings beat for Coty, with a Zacks Rank of 4 (Sell) and an Earnings ESP of -41.20% [6]

An updated edition of the February 26, 2025 article.The beauty and cosmetics space has evolved from ancient natural remedies to today's advanced, science-backed skincare and makeup solutions. Beauty standards and preferences have changed over time, shaped by cultural influences, technological innovations and shifting societal values. Now a multi-billion-dollar global industry, beauty continues to redefine self-expression and personal identity through a diverse range of products — from skincare and makeup to ...

Companies in the Zacks Cosmetics industry are operating in a rapidly evolving macroeconomic landscape, grappling with external challenges that are dampening consumer demand and pressuring sector performance. Sluggish sales are being compounded by rising production and operational costs, which continue to impact profitability and efficiency.Nevertheless, leading players such as The Estee Lauder Companies Inc. (EL) , Coty Inc. (COTY) , Helen of Troy Limited (HELE) and European Wax Center, Inc. (EWCZ) are bene ...

Core Insights - Coty Inc. has sold its 20% stake in SKKN by Kim to SKIMS, ending its partnership with Kim Kardashian's beauty brand, allowing SKIMS to unify its beauty and lifestyle ventures under one brand [1] - The divestment is part of Coty's strategy to streamline its portfolio, invest in innovation, and strengthen its financial position through deleveraging efforts [1][2] Coty's Strategic Rationale - The decision to divest from SKKN reflects Coty's ongoing evaluation and optimization of its diverse brand portfolio, aiming to drive growth in key categories such as prestige and mass beauty, fragrance, and skincare [2] - Proceeds from the sale will support Coty's deleveraging strategy and fuel innovation across its broader brand portfolio [2] Historical Context - Coty initially invested in Kim Kardashian's beauty business in 2020, completing the transaction in 2021, leveraging its R&D capabilities and global distribution network [3] - Despite exiting SKKN, Coty retains a majority stake and perpetual license in Kylie Cosmetics, which has grown 1.5 times in the past two years under Coty's leadership [3] Market Position and Performance - Coty continues to solidify its leadership in the fragrance industry, achieving high-single-digit sell-out growth in its prestige fragrance portfolio during the first half of fiscal 2025, despite challenges in markets like China and travel retail [4] - The company's cosmetics brands are gaining momentum, supported by strong social media advocacy and an agile innovation strategy [5] Transformation and Operational Strategy - Coty is advancing its "All In to Win" transformation program, focusing on cost reduction, margin expansion, and revenue growth, with recent operational streamlining efforts strengthening cash flow for future investments [6] Challenges and Market Headwinds - Coty faces challenges in the Chinese mainland and Asia Travel Retail markets, where weak demand persists, leading retailers to adjust their orders [7] - The company is managing higher advertising and consumer promotions spending, with A&CP expenses remaining in the high 20% range, reflecting a year-over-year increase [8] Future Outlook - With the sale of the SKKN stake, Coty is reinforcing its focus on core brands and long-term strategic vision, committed to driving sustainable growth and expanding its presence in key global markets [10]

Core Insights - Coty Inc. is facing challenges due to rising costs and weaker-than-expected demand in key markets such as China, Travel Retail Asia, and the United States [1] - The company reported a decline in both top and bottom-line results for the second quarter of fiscal 2025, missing the Zacks Consensus Estimate despite strong holiday sales [1][4] - Coty's share price has dropped by 25.7% over the past three months, underperforming the industry and broader market indices [2] Financial Performance - In the second quarter of fiscal 2025, Coty's Asia Pacific segment reported net revenues of $191.5 million, reflecting an 11% decline due to tough market dynamics in China and the regional Travel Retail channel [5] - The company anticipates LFL sales trends in the second half of fiscal 2025 to remain consistent with the second quarter, projecting a decline of 1% to 2% [7] - A significant foreign exchange headwind of approximately 3% is expected to impact reported sales for fiscal 2025, leading to a low single-digit percentage decline [7] Cost Pressures - Coty has been experiencing increased advertising and consumer promotions (A&CP) spending, with A&CP costs remaining in the high 20s percentage range [6] - The ongoing rise in A&CP expenses, if not effectively managed, could further pressure Coty's margins and profitability in the upcoming quarters [6] Market Outlook - The beauty market is transitioning into a more normalized phase, with ongoing challenges in Asia and Travel Retail affecting Coty's performance [4] - Management forecasts a similar challenging market environment for fiscal 2026, indicating that recovery may take longer than anticipated [8]

Core Insights - Coty's international operations are crucial for assessing its financial strength and growth potential, especially given its global presence [1][2] - The company's reliance on foreign markets presents both opportunities and challenges, impacting its revenue stability and growth trajectory [3][9] Revenue Performance - For the quarter ending December 2024, Coty's total revenue was $1.67 billion, a decline of 3.3% year over year [4] - EMEA region generated $839.8 million, accounting for 50.29% of total revenue, slightly below the expected $842.22 million [5] - Asia Pacific contributed $191.5 million, representing 11.47% of total revenue, also falling short of the consensus estimate of $202.55 million [6] Future Revenue Predictions - Analysts predict Coty's total revenue for the current fiscal quarter to be $1.32 billion, reflecting a 4.9% decline from the previous year [7] - For the entire year, total revenue is forecasted at $5.98 billion, a reduction of 2.2% from the previous year, with EMEA expected to contribute 48% and Asia Pacific 12.1% [8] Stock Market Performance - Coty's stock has declined by 21.9% over the past month, contrasting with a 4.7% increase in the S&P 500 [13] - Over the past three months, Coty's shares decreased by 23.8%, while the S&P 500 rose by 3.1% [13]

Core Insights - Coty Inc. reported weaker-than-expected earnings for its second quarter, with earnings of 11 cents per share, missing the analyst consensus estimate of 21 cents per share, and quarterly sales of $1.67 billion, below the expected $1.72 billion [1][2] Company Performance - CEO Sue Nabi indicated that FY25 is expected to be pivotal for Coty, noting that the global beauty market continues to grow, albeit at a moderated pace compared to previous years. Fragrances, which account for over 60% of Coty's revenues, are outperforming other beauty categories [2] - Following the earnings announcement, Coty's shares fell by 5.5%, trading at $5.79 [2] Analyst Reactions - Analysts adjusted their price targets for Coty after the earnings report, with Morgan Stanley lowering its target from $9 to $7, Canaccord Genuity from $10 to $8, Evercore ISI Group from $15 to $10, and Goldman Sachs from $9 to $8 [3][4]