Financial Performance - Coty Inc. reported financial results for the fiscal year ended June 30, 2025, with a focus on strategic planning and future revenue trends [158]. - The company reported a mid-single digit percentage net revenue decline in the fragrance category during the first three months of fiscal 2026, despite overall market growth [177]. - The company expects its reported net revenue for the second quarter of fiscal 2026 to be roughly flat compared to the prior year, with an estimated low to mid-single digit percentage benefit from foreign exchange [179]. - Net revenues for the three months ended September 30, 2025, decreased by 6%, or $94.3 million, to $1,577.2 million from $1,671.5 million in the same period of 2024, primarily due to a 10% decline in unit volume [190]. - Prestige segment net revenues decreased by 4%, or $44.6 million, to $1,069.5 million, while Consumer Beauty segment revenues decreased by 9%, or $49.7 million, to $507.7 million [191][193]. - Adjusted operating income for the total company was $240.5 million for the three months ended September 30, 2025, compared to $303.6 million in the same period of 2024 [205]. - Net income for Coty Inc. decreased to $74.0 million in Q3 2025 from $90.7 million in Q3 2024, representing an 18% decline [206]. - Adjusted net income attributable to Coty Inc. was $106.0 million, down 17% from $128.1 million in the same period last year [224]. Cost Management and Efficiency - The company anticipates ongoing cost efficiency and restructuring initiatives to enhance profitability and cash flow management [160]. - The company plans to implement a Fixed Cost Reduction Plan with expected cash costs of approximately $80.0 million, evenly split between fiscal 2026 and fiscal 2027 [171]. - The company is re-accelerating cost reduction efforts to deliver savings of approximately $80.0 million in fiscal 2026 [179]. - The company expects to incur approximately $35.0 million in costs related to tariff increases through the first quarter of fiscal 2027, with $30.0 million impacting fiscal 2026 results [232]. - Cash costs associated with the Fixed Cost Reduction Plan are expected to be approximately $80.0 million, split between fiscal 2026 and fiscal 2027, with $10.0 million incurred to date [233]. Strategic Initiatives - Coty is exploring strategic transactions, including a review of its consumer beauty business and potential divestitures related to its mass color cosmetics segment [160]. - The company is conducting a strategic review of its Consumer Beauty business, assessing alternatives such as partnerships and divestitures to maximize long-term value [170]. - Coty is focused on enhancing its digital and e-commerce capabilities to adapt to changing consumer preferences and market dynamics [161]. - The company aims to leverage its leadership in global fragrances to expand its market presence in profitable beauty categories [161]. - The company is strategically positioned to achieve sustained growth in prestige fragrances with new launches planned for fiscal 2026 and beyond [177]. Market Challenges - Coty is facing inflationary pressures and plans to implement pricing actions to mitigate increased costs [160]. - The company is navigating geopolitical risks, including the impact of the war in Ukraine and conflicts in the Middle East, on its operations and sales outlook [162]. - The Americas region experienced a mid-single digit percentage decline in net revenue during the first three months of fiscal 2026, driven by negative market trends in Brazil [181]. - The decrease in net revenues was attributed to declines in fragrances and color cosmetics across both Prestige and Consumer Beauty segments, with significant impacts from European markets [190][192]. Operational Performance - Operating income for the three months ended September 30, 2025, was $185.0 million, a decrease of 22% from $237.8 million in the same period of 2024, with an operating income margin of 11.7% compared to 14.2% [196]. - The cost of sales decreased by 3%, or $16.5 million, to $560.4 million, but the cost of sales as a percentage of net revenues increased to 35.5% from 34.5%, resulting in a gross margin decrease of approximately 100 basis points [194]. - Selling, general and administrative expenses decreased by 2%, or $14.5 million, to $793.5 million, but as a percentage of net revenues, these expenses increased to 50.3% from 48.3% [195]. - The Prestige segment's operating income decreased by 13% to $208.9 million, with an operating margin of 19.5%, down from 21.7% [200]. - The Consumer Beauty segment reported an operating loss of $7.7 million, compared to an income of $14.0 million in the prior year, with an operating loss margin of 1.5% [201]. Cash Flow and Financing - Net cash provided by operating activities was $65.2 million for the three months ended September 30, 2025, compared to $67.4 million in 2024, reflecting a decrease of $2.2 million [244]. - Net cash used in investing activities decreased by $23.5 million to $53.8 million in 2025 from $77.3 million in 2024, primarily due to lower capital expenditures [245]. - The company issued $900.0 million of 5.600% senior notes due 2031, receiving net proceeds of $888.0 million, which were used to redeem existing debt [235]. - The net amount factored under factoring facilities was $223.8 million as of September 30, 2025, compared to $211.8 million as of June 30, 2025 [242]. - The company has suspended the payment of dividends on common stock until it approaches a net debt to adjusted EBITDA target of 2x [247]. Sustainability and Social Responsibility - Coty is committed to sustainability initiatives, including progress towards achieving sustainability targets and addressing climate change concerns [162]. - The company has substantially completed the exit of its commercial activities in Russia, anticipating future net cash costs of $1.0 to $1.5 million funded by its Russian subsidiary [231].

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]