Financial Data and Key Metrics Changes - The company reported a decline in adjusted EBITDA of 15% year-over-year, totaling $330 million, which was at the lower end of guidance for a low- to mid-teens decline [37] - Adjusted gross margin was 64.2%, reflecting a 260 basis point decline from the prior year, with expectations for continued margin pressures in the second half of fiscal year 2026 [36][44] - Free cash flow in the first half was $524 million, exceeding guidance and last year's performance, driven by better receivables performance [38] Business Line Data and Key Metrics Changes - In the Prestige segment, like-for-like sales declined by 2%, an improvement from a 6% decline in the previous quarter, with innovation contributing positively [31][32] - Consumer beauty saw like-for-like sales decline of 6%, improving from an 11% decline in Q1, with a focus on reallocating investments to core brands [33][36] - The company plans to streamline its innovation pipeline to focus on high-potential launches, particularly in the color cosmetics segment [34] Market Data and Key Metrics Changes - The prestige beauty market grew approximately 5% in Q2, indicating a slowdown from 6% growth in Q1, with the prestige fragrance market moderating from 5% to 3% growth [28][29] - The company experienced a gap between sell-out and market performance, particularly in key markets like the U.S., U.K., and Germany, while emerging markets showed strong sell-out performance [30][31] Company Strategy and Development Direction - The company is implementing a new strategic framework called "Coty Curated," focusing on making big brands bigger, scaling successful initiatives, and stopping those that dilute resources [9][10] - A performance improvement plan named "Color the Future" is being activated to return the consumer cosmetics business to growth and profit expansion [26][33] - The company is prioritizing operational discipline and focused investment to enhance market share and profitability [18][49] Management's Comments on Operating Environment and Future Outlook - Management acknowledged disappointing financial results over the past 18 months and emphasized the need for operational discipline and focused execution to leverage the company's strengths [8][9] - The outlook for Q3 includes expectations for mid-single-digit declines in like-for-like revenue trends, particularly in consumer beauty, while the prestige fragrance market is expected to grow low to mid-single digits [40][41] - Management is committed to protecting marketing investments behind core brands and expects to see improvements in sell-out trends in focus brands [46][44] Other Important Information - The company ended the quarter with net debt of $2.6 billion and leverage of 2.7x, the lowest levels in over nine years, with a commitment to reduce leverage closer to 2x over time [39] - The divestiture of Wella generated $750 million in upfront proceeds, aligning with the company's strategy to streamline its portfolio [38] Q&A Session Summary Question: What are the expectations for the upcoming quarters? - The company expects like-for-like sales to decline mid-single digits in Q3, driven primarily by declines in consumer beauty, while the prestige fragrance market is anticipated to grow low to mid-single digits [40][41] Question: How is the company addressing the underperformance in the U.S. market? - The company is focusing on reallocating investments to core brands and improving execution in key markets, with a specific plan to narrow the sell-out gap with the market over time [33][41]

NEW YORK--(BUSINESS WIRE)--Regulatory News: Coty Inc. (NYSE: COTY) (EURONEXT PARIS: COTY) today announced that on February 5, 2026 the Company filed its quarterly report on Form 10-Q for the fiscal quarter ended December 31, 2025 with the U.S. Securities and Exchange Commission (the "SEC†). The quarterly report is available on the SEC's website at: https://www.sec.gov/ix? doc=/Archives/edgar/data/0001024305/000102430526000014/coty-20251231.htm. About Coty Inc. Founded in Paris in 1904, Coty is o. ...

CoverGirl owner Coty withdrew its full-year guidance on Thursday as it launched a strategic focus on core brands, with new interim CEO Markus Strobel calling for improved discipline and execution to t... ...

Financial Performance - Coty Inc. reported financial results for the fiscal year ended June 30, 2025, with a focus on strategic planning and operational efficiency [162]. - The fiscal year 2026 is projected to continue the trend of operational transformation and strategic growth initiatives [171]. - In the first half of fiscal 2026, net revenues from fragrances decreased by a low single-digit percentage compared to the prior-year period, with a focus on leveraging innovations like the Boss Bottled Beyond launch to unlock value in key markets [179]. - Net revenues from color cosmetics declined by a mid single-digit percentage in the first half of fiscal 2026, prompting the implementation of a performance improvement plan to narrow the sell-out gap [180]. - Skin and body care net revenues also declined by a low single-digit percentage in the first half of fiscal 2026, influenced by competitive pricing actions in the Brazil market [182]. - In the Americas, net revenue declined by a mid single-digit percentage, primarily due to weak demand in the U.S. color cosmetics market, while EMEA and Asia Pacific also saw declines [183]. - The third quarter of fiscal 2026 is expected to see a decline in reported net revenue compared to the prior year, with gross margin pressures anticipated due to lower net sales and tariff impacts [184]. - For the three months ended December 31, 2025, Coty Inc. reported a net loss of $116.2 million, a significant decline from a net income of $30.6 million in the same period of 2024, representing a change of less than 100% [210]. - For the six months ended December 31, 2025, net revenues decreased by 3%, or $85.6 million, to $3,255.8 million from $3,341.4 million in the same period of 2024, primarily due to a 4% decrease in unit volume and a negative price and mix impact of 1% [229]. - Net loss attributable to Coty Inc. was $55.7 million for the six months ended December 31, 2025, compared to net income of $106.6 million for the same period in 2024, primarily due to a realized loss on the sale of Wella of $200.9 million [265]. Revenue and Segment Analysis - The overall increase in net revenues reflects sales growth in the Prestige segment, while Consumer Beauty faced declines primarily due to color cosmetics in the U.S. market [194][197]. - Prestige segment net revenues rose by 2%, or $17.5 million, to $1,133.6 million, while Consumer Beauty segment revenues decreased by 2%, or $8.8 million, to $545.0 million [196][198]. - Prestige segment net revenues decreased by 1%, or $27.1 million, to $2,203.1 million, while Consumer Beauty segment revenues fell by 5%, or $58.5 million, to $1,052.7 million [230]. - The operating income for the Consumer Beauty segment dropped to $10.6 million, a decline of 86% from $78.1 million in the prior year [243]. Cost and Expense Management - Coty aims to achieve cost control and gross margin growth as part of its strategic initiatives, with a focus on debt deleveraging [165]. - Cost of sales increased by 9%, or $52.3 million, to $608.0 million, resulting in a gross margin decrease of approximately 290 basis points, with cost of sales as a percentage of net revenues rising to 36.2% [199]. - Selling, general and administrative expenses increased by 6%, or $45.2 million, to $842.5 million, with expenses as a percentage of net revenues rising to 50.2% [202]. - The company is re-accelerating cost reduction efforts to achieve savings of approximately $80.0 million in fiscal 2026 [184]. - The Fixed Cost Reduction Plan is expected to incur cash costs of approximately $80.0 million, split evenly between fiscal 2026 and fiscal 2027, with $15.0 million incurred to date [273]. Strategic Initiatives and Future Outlook - The company is undergoing a strategic review of its consumer beauty business, including its mass color cosmetics and local Brazilian brands [164]. - Coty is evaluating potential strategic transactions, including acquisitions and divestitures, to optimize its portfolio and enhance market position [164]. - The ongoing strategic transformation agenda is under review by the Interim CEO to enhance performance and competitive positioning, with no material changes finalized yet [174]. - Coty is focused on enhancing its e-commerce and digital initiatives to adapt to changing consumer preferences and market trends [165]. - Future launches will be developed with dual production capabilities to mitigate supply chain disruptions and cost increases [177]. Supply Chain and Operational Challenges - Coty is facing risks related to global supply chain challenges and geopolitical uncertainties, which may impact its operations and financial performance [166]. - The company is optimizing its supply chain to enhance resilience and agility in response to changing tariff environments, including transitioning mass fragrance production to U.S. manufacturing sites [176]. - The company estimates an impact of approximately $33.0 million in costs related to tariff increases through the first quarter of fiscal 2027, with about $28.0 million expected in fiscal 2026 [178]. Tax and Financial Adjustments - The effective income tax rate for the three months ended December 31, 2025, was 31.1%, down from 45.9% in the prior year, attributed to the release of uncertain tax positions [220]. - The effective income tax rate decreased to 31.4% for the six months ended December 31, 2025, from 35.9% in 2024, primarily due to the release of uncertain tax positions [259]. Cash Flow and Financing Activities - Net cash provided by operating activities increased to $624.9 million for the six months ended December 31, 2025, up from $531.9 million in 2024, driven by changes in working capital [285]. - Net cash provided by investing activities was $658.7 million, significantly improved from $(108.2) million in 2024, primarily due to proceeds from the sale of the remaining equity investment in Wella [286]. - Net cash used in financing activities increased to $(1,106.5) million from $(461.3) million in 2024, largely due to debt-related activities and higher payments associated with hedge valuation adjustments [287].

Financial Performance - Q2 2026 reported net revenue was $1,678.6 million, a 1% increase year-over-year, but a 3% decline on a like-for-like (LFL) basis[6] - Prestige net revenue was $1,133.6 million, accounting for 68% of total sales, with a 2% increase reported but a 2% decline on an LFL basis[6] - Consumer Beauty net revenue decreased to $545.0 million, representing 32% of total sales, with a 2% decline reported and a 6% decline on an LFL basis[6] - Reported operating income was $148.2 million, down 45% year-over-year, resulting in an operating margin of 8.8%[6] - The company reported a net loss of $126.9 million for Q2 2026, compared to a net income of $20.4 million in the prior year, leading to a net loss margin of 7.6%[6] - Adjusted EBITDA for Q2 2026 was $330.2 million, a 15% decrease year-over-year, with an adjusted EBITDA margin of 19.7%[6] - Fiscal year-to-date reported loss per share of $0.07, deteriorating from reported EPS of $0.11 in the prior year[19] - 2Q26 adjusted operating income of $274.3 million, down 18% from $333.7 million in the prior year, with an adjusted operating margin of 16.3%[24] - 2Q26 adjusted EBITDA of $330.2 million decreased 15% from $390.7 million in the prior year, with an adjusted EBITDA margin of 19.7%[24] - 2Q26 adjusted net income of $119.7 million increased from $98.8 million in the prior year, with an adjusted net income margin of 7.1%[24] Debt and Financial Position - Total debt at quarter-end was $3,038.1 million, with financial net debt at $2,601.4 million, resulting in a financial leverage ratio of 2.7x[7] - Coty sold its remaining 25.8% stake in Wella for $750 million, using most proceeds to pay down long-term debt[12] - The company reported a diluted EPS of $(0.14) for the three months ended December 31, 2025, compared to $0.02 in the same period of 2024[59] - Coty Inc.'s total debt as of December 31, 2025, was $3,038.1 million, with financial net debt amounting to $2,601.4 million after accounting for cash and cash equivalents of $436.7 million[82] - Long-term debt decreased to $2,986.8 million as of December 31, 2025, from $3,955.5 million as of June 30, 2025[91] Revenue by Region - Americas net revenue of $624.5 million in 2Q26, representing 37% of total sales, decreased 2% on a reported basis[29] - EMEA net revenue of $864.2 million in 2Q26 increased 3% on a reported basis, including a 7% FX benefit[31] - Asia Pacific net revenue of $189.9 million in 2Q26 decreased 1% on a reported basis, with a 1% FX benefit[32] - The Americas region reported net revenues of $624.5 million for the three months ended December 31, 2025, a decrease of 2% from $638.6 million in the same period of 2024[57] - EMEA region net revenues increased by 3% to $864.2 million for the three months ended December 31, 2025, compared to $839.8 million in the same period of 2024[57] Strategic Initiatives - The company is initiating the "Coty. Curated." strategic framework to improve performance and focus on core businesses[4] - The company is focusing on strategic planning and operational efficiency to enhance revenue growth and manage inflationary pressures[35] - Future operations will include a strategic review of the consumer beauty business, particularly in mass color cosmetics and local Brazilian brands[35] - The company anticipates ongoing cost efficiency initiatives and restructuring programs to improve profitability[36] - The company plans to implement new product launches and marketing strategies to respond to changing consumer preferences[36] - Adjusted Performance Measures will be used to evaluate performance and guide strategic decisions, including budgeting and senior management compensation[42] Operational Challenges - The company is addressing supply chain challenges and disruptions to ensure effective production and inventory management[37] - There is a focus on sustainability initiatives and compliance with evolving regulatory measures impacting the beauty industry[37] - The company is assessing the impact of geopolitical risks, including the war in Ukraine and conflicts in the Middle East, on its business operations[37] Cash Flow and Liquidity - 2Q26 cash from operations totaled $559.7 million, compared to $464.5 million during the same period in the prior year[24] - Net cash provided by operating activities for the six months ended December 31, 2025, was $624.9 million, an increase from $531.9 million in 2024[81] - Free cash flow for the three months ended December 31, 2025, was $513.1 million, compared to $419.0 million in the same period of 2024[81] - Future cash flows and liquidity management will be prioritized, including potential refinancing and debt deleveraging activities[36] Adjusted Performance Metrics - The company has excluded various costs from its adjusted performance measures, including restructuring costs and acquisition-related expenses, to provide a clearer view of its core operating performance[46] - The adjusted diluted EPS for the three months ended December 31, 2025, was $0.14, up from $0.11 in the same period of 2024[78] - Adjusted EBITDA for the twelve months ended December 31, 2025, was $957.2 million, reflecting the company's operational performance over the trailing twelve months[83] - The company reported a significant increase in adjustments to reported operating loss, totaling $662.1 million for the twelve months ended December 31, 2025[83] - Coty Inc. had an adjusted operating income of $730.4 million for the twelve months ended December 31, 2025, indicating strong operational efficiency[83]

NEW YORK--(BUSINESS WIRE)--Regulatory News: Coty Inc. (NYSE: COTY) (Paris: COTY) ("Coty" or "the Company") today announced its results for the second quarter of fiscal year 2026, ended December 31, 2025. Coty delivered Q2 results broadly in line with expectations, while significantly reducing its net debt and leverage to the lowest level in close to a decade. "I'm truly excited and energized to join Coty at this pivotal moment," said Markus Strobel, Executive Chairman and Interim Chief Executiv. ...

Key Takeaways Coty is working with OpenAI to deploy secure, governed AI that supports productivity and decision-making.COTY is pairing AI rollout with global employee upskilling and clear guardrails for responsible use.Coty's e-commerce exceeded $1B in net revenues, with 1Q26 sell-out rising 5-6%.Coty Inc. (COTY) partnered with OpenAI to explore and implement responsible artificial intelligence solutions across certain areas of its global operations.Through the introduction of ChatGPT Enterprise, Coty’s wor ...

Core Insights - The Consumer Staples sector is currently underperforming, ranking among the bottom 32% of Zacks classified sectors, with earnings expected to decline in the upcoming reports [2][3]. Industry Overview - U.S. consumer stocks are facing challenges such as weakening consumer confidence, persistent inflation, and pressure on discretionary spending, which are squeezing margins and making earnings growth difficult [3]. - Global demand uncertainty, inflationary pressures, weather volatility, and geopolitical concerns are further constraining margins and limiting near-term earnings growth [3]. Earnings Performance - As of now, 26.7% of Consumer Staples companies have reported earnings, with a year-over-year earnings decline of 3.7% and a revenue drop of 1.1% [5]. - For the December quarter, earnings are expected to decline by 2.4% year-over-year, while revenues are projected to rise by 2.4% [6]. Company-Specific Insights - **Estee Lauder Companies Inc. (EL)**: Expected to report revenue of $4.22 billion, a 5.3% increase year-over-year, with earnings estimated at 83 cents per share, reflecting a 33.9% growth [8]. The company is benefiting from its Profit Recovery and Growth Plan [9]. - **Hershey Company (HSY)**: Anticipated to report revenues of $3 billion, a 4% increase, but earnings are expected to decline by nearly 48% to $1.40 per share [10][11]. Continued demand in its core portfolio is expected to support results despite margin pressures [11]. - **Newell Brands Inc. (NWL)**: Expected to see a revenue decline to $1.89 billion, a 3.3% drop, while earnings are projected to grow by 12.5% to 18 cents per share [12]. The company is facing challenges from inflation and geopolitical volatility [12]. - **Coty Inc. (COTY)**: Projected to report revenues of $1.66 billion, a slight decline of 0.3%, with earnings expected to increase by 63.6% to 18 cents per share [13]. The company is experiencing revenue constraints due to a highly promotional market and tariff pressures [13]. - **Philip Morris International Inc. (PM)**: Expected to report revenues of $10.4 billion, a 7.3% increase, with earnings stable at $1.67 per share, reflecting a 7.7% growth [14]. The company is benefiting from strong pricing power and a growing smoke-free product portfolio [14].

Key Takeaways Coty Q2 revenues are estimated at $1.66 billion, down 0.3% year over year.EPS are projected at 18 cents, up 63.6% from the prior-year quarter.Coty's fragrance strength, U.S. execution gains and cost savings are supporting performance amid pressures.Coty Inc. (COTY) is likely to register a decline in the top line when it reports second-quarter fiscal 2026 earnings on Feb. 5. The Zacks Consensus Estimate for revenues is pegged at $1.66 billion, indicating a decrease of 0.3% from the prior-year r ...

在过去的2025年，美妆行业的整体格局经历了深刻的变革和调整，这一洗牌很可能延续至2026年。 行业整体业绩增速明显放缓，市场表现疲软，不少企业甚至出现营收下滑，头部企业之间的位次争夺战愈发激烈。在国际TOP10美妆企业中，半数集团整 体营收回落，即使保持增长者也只是幅度有限。 与此同时，欧莱雅、联合利华在内的多个国际美妆集团纷纷优化产品组合，剥离低效业务，"卖子"的消息时常传出，过去一年中超50个美妆品牌被舍弃。 更值得关注的是，为降本增效，全球美妆十强中更有六家相继裁员。 在此背景下，寻找发展最优解的这一重担，直接落在了各集团管理层的肩上。2025年，从各业务部门到区域市场，美妆集团们的人事变动异常频繁。而关 乎企业命运的战略制定决策权，则更多地集中各集团CEO的手中。 据聚美丽不完全统计，2025年，仅全球头部美妆集团的高管变动就发生了超30起，其中八大美妆巨头均经历了集团"一把手"的更迭。 2025，换帅潮席卷美妆巨头！ 在面对行业变局与区域挑战，国际美妆集团不约而同地选择通过换帅进行应对，由此掀起了一波密集的"换帅潮"。据聚美丽观察发现，这些企业的CEO变 动存在以下共性： 1.各集团内部提升的CE ...