Core Insights - The performance of Coty's international operations is critical for understanding its financial strength and growth potential [1][2] - The company's total revenue for the quarter ending June 2025 was $1.25 billion, reflecting an 8.1% decline year over year [4] International Revenue Breakdown - EMEA contributed $574.2 million, accounting for 45.9% of total revenue, with a surprise increase of +6.79% compared to analyst expectations [5] - Asia Pacific generated $167 million, representing 13.3% of total revenue, exceeding the consensus estimate by +3.51% [6] Revenue Projections - Analysts project Coty to report $1.61 billion in total revenue for the current fiscal quarter, a decline of 3.7% from the previous year [7] - For the full year, total revenue is expected to reach $5.91 billion, a slight increase of 0.2% from the previous year [8] Market Trends and Stock Performance - The company's stock has declined 23.2% over the past month, contrasting with a 2.7% increase in the S&P 500 [13] - Over the past three months, Coty's shares have decreased by 20.3%, while the S&P 500 rose by 11% [13]

Group 1: Industry Dynamics - Valentino appointed Riccardo Bellini as the new CEO, effective September, to replace Jacopo Venturini [3] - Guess announced a privatization deal valued at approximately $1.4 billion with Authentic Brands Group, marking a strategic shift for the company [4] - L'Oréal decided to shut down its recently acquired makeup brand Healus, retaining only the skincare brand Dr.G, indicating a strategic business adjustment [5] Group 2: Company Performance - Coty reported a 4% decline in net revenue for the fiscal year 2025, with a net loss of $381 million, attributed to goodwill impairment [8][9] - Estée Lauder's net sales for fiscal year 2025 fell by 8% to $14.326 billion, with significant operating losses due to various factors including goodwill impairment [10][11] - Li Ning's revenue grew by 3.3% to 14.817 billion RMB, with a net profit of 1.737 billion RMB, reflecting a stable financial performance [2] Group 3: Notable Growth - Pop Mart's revenue surged by 204.4% to 13.88 billion RMB, with net profit increasing by 396.5%, driven by the success of the Labubu product line [6] - Perfect Moment's revenue increased by 51% to $1.5 million in Q1 2025, although the company still reported a net loss [12] - Pandora's Q2 revenue grew by 8%, reaching 7.075 billion DKK, despite plans to close up to 100 stores in China [12] Group 4: Market Challenges - Estée Lauder's stock fell by 9% in pre-market trading after reporting lower-than-expected profits, highlighting ongoing market pressures [10] - Coty anticipates a revenue decline of 6% to 8% in Q1 2026, indicating continued challenges in stabilizing growth [9] - The frequent personnel changes among major brands reflect common strategies to navigate a challenging market environment [4]

Group 1 - The article discusses the observation of Coty, Inc. (NYSE: COTY) shares and the anticipation of upcoming financial results, with the stock previously trading around $4.60 [1] - The author emphasizes a long-term investment strategy focused on strategic buying opportunities, particularly in dividend and value stocks, which has led to a high rating on Tipranks.com and a significant following on Seeking Alpha [1] Group 2 - There is no specific financial performance data or detailed analysis provided in the content [2]

Group 1: Hong Kong Stocks Performance - Miniso (09896) surged over 20% after reporting a 10% year-on-year increase in adjusted net profit for Q2, with TOP TOY revenue skyrocketing by 87.0% [1] - Li Ning (02331) rose over 6% as it announced a 3.3% year-on-year increase in revenue and declared an interim dividend of HKD 0.3359 per share [1] - Innovent Biologics (02096) increased by over 6% following a 26% year-on-year growth in innovative drug revenue, expanding its commercialized innovative drug portfolio to ten products [1] - Tuhu-W (09690) gained over 10% after reporting a 14.6% year-on-year increase in adjusted net profit while continuing to optimize supply-side costs [1] - Kuaishou-W (01024) rose over 4% with impressive Q2 results and accelerated commercialization [1] - UBTECH (09880) increased over 3% as it led the establishment of two national technical standards for humanoid robots [1] - InnoCare Pharma (02577) saw a rise of over 5% after announcing a partnership with NVIDIA [1] Group 2: Other Notable Performances - China Communications Services (00552) fell over 2% despite a slight 0.18% year-on-year increase in net profit attributable to shareholders, with stable development among its three major clients [2] - Parkson Group (03368) surged nearly 25% after reporting a turnaround to profitability in the first half of the year and proposing an interim dividend of HKD 0.02 per share [2] - Esprit Holdings (00330) jumped over 37% after issuing a profit warning, expecting a net profit of approximately HKD 1 million for the six months ending June 30, 2025 [2] - XPeng Motors (09868) rose over 10% as CEO He Xiaopeng increased his stake by purchasing 3.1 million Class A ordinary shares at an average price of HKD 80.49 per share [2] Group 3: US Market Highlights - Coty (COTY.US) plummeted 21.60% due to weak performance in the US market, retailer destocking, and consumers seeking value, impacting Q4 results [3] - NIO (NIO.US) increased by 9.27% ahead of the launch of its new ES8 product and the start of pre-sales [3] - Huazhu Group (HTHT.US) continued to rise by 2.19% with a 41.3% year-on-year increase in revenue and net profit, benefiting from management franchise and licensing business [3] - Boss Zhipin (BZ.US) rose 6.61% after reporting an over 85% year-on-year increase in net profit for the mid-year and extending its share buyback plan [3] - Youlan Group (YOUL.US) surged 17.13% after announcing plans to acquire four companies to expand its online recruitment and regional market share [3] - Hesai Technology (HSAI.US) increased by 11.00% amid market speculation about a potential IPO in Hong Kong to raise approximately USD 300 million [3] Group 4: Additional US Stock Movements - Miniso (MNSO.US) rose 6.38% after reporting a revenue of CNY 9.39 billion for the first half of the year, a year-on-year increase of 21.1%, with adjusted net profit of CNY 1.28 billion [4] - Walmart (WMT.US) fell 4.49% as Q2 adjusted earnings per share fell short of expectations due to increased insurance claims, legal fees, and restructuring costs [4] - Gilead Sciences (GILD.US) dropped 2.18% after CVS Health decided not to include Gilead's new HIV prevention drug Yeztugo in its business plans [4] - XPeng Motors (XPEV.US) rose 11.68% following the CEO's purchase of 3.1 million Class A ordinary shares [5] - Aegon (AEG.US) increased by 7.64% after reporting a turnaround to profitability in the first half of 2025, primarily driven by growth in its US business [5]

Part I [Business](index=9&type=section&id=Item%201.%20Business) Coty Inc. is a global beauty company focused on fragrances, expanding e-commerce, and sustainability, operating in Prestige and Consumer Beauty segments with seasonal sales - Coty's strategy focuses on leveraging **fragrance leadership**, expanding into **profitable categories and e-commerce**, and enhancing **sustainability**[23](index=23&type=chunk) Brand Portfolio Overview | Consumer Beauty | Prestige | | --- | --- | | Adidas | Burberry | | David Beckham | Calvin Klein | | CoverGirl* | Chloe | | Max Factor* | Gucci | | Rimmel* | Hugo Boss | | Sally Hansen* | Kylie Cosmetics by Kylie Jenner | | Bourjois* | Lancaster* | | Monange* | Marc Jacobs | | Risque* | Tiffany & Co. | *Indicates an owned beauty brand - The company distributes across **123 countries**; Walmart and A.S. Watson each contributed approximately **4% of total net revenues** in fiscal 2025[34](index=34&type=chunk) - In fiscal 2025, **48% of net revenues** were from owned/perpetually licensed brands, and **37%** from exclusive licenses with an average duration of **24 years**[48](index=48&type=chunk)[50](index=50&type=chunk) - As of June 30, 2025, the company employed approximately **11,636 full-time employees** across **36+ countries**[51](index=51&type=chunk) - Sales typically increase in the **second fiscal quarter** due to the winter holiday season[72](index=72&type=chunk) [Risk Factors](index=15&type=section&id=Item%201A.%20Risk%20Factors) The company faces diverse risks across business, strategy, operations, macroeconomic conditions, indebtedness, legal issues, and stock ownership [Risks related to our Business and Industry](index=17&type=section&id=Risks%20related%20to%20our%20Business%20and%20Industry) - The beauty industry is highly competitive, facing pressure from large multinationals, private labels, and agile 'disruptor' brands leveraging digital platforms[78](index=78&type=chunk)[79](index=79&type=chunk) - Retail consolidation and the shift to e-commerce increase dependence on key retailers and necessitate successful expansion of digital channels[80](index=80&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk) - Success relies on brand licenses, which impose obligations like royalty payments and minimum sales, with risks of termination or non-renewal[95](index=95&type=chunk)[96](index=96&type=chunk) [Risks Related to our Business Strategy and Organization](index=21&type=section&id=Risks%20Related%20to%20our%20Business%20Strategy%20and%20Organization) - Implementing global strategies involves significant operational and organizational changes, potentially leading to short-term costs, customer loss, and supply chain disruptions[104](index=104&type=chunk)[105](index=105&type=chunk) - Significant costs have been incurred from past acquisitions and are expected for ongoing and future restructuring initiatives[106](index=106&type=chunk)[107](index=107&type=chunk) - Goodwill and other assets face impairment risk; **$212.8 million** in trademark impairment charges were recorded in Q3 fiscal 2025 across both segments[119](index=119&type=chunk) [Risks related to our Business Operations](index=24&type=section&id=Risks%20related%20to%20our%20Business%20Operations) - Global operations face disruptions from supply chain issues, industrial accidents, and geopolitical events such as the war in Ukraine[120](index=120&type=chunk)[121](index=121&type=chunk) - Increased IT dependency exposes the company to service interruptions, data corruption, and growing cyber-attack risks, including ransomware[125](index=125&type=chunk)[126](index=126&type=chunk) - AI use introduces risks such as inaccuracies, biases, increased cybersecurity vulnerabilities, and challenges with evolving regulations[137](index=137&type=chunk) [Risks related to Macroeconomic Conditions and Market Risks](index=31&type=section&id=Risks%20related%20to%20Macroeconomic%20Conditions%20and%20Market%20Risks) - The business is vulnerable to global economic downturns, inflation, rising interest rates, and geopolitical conflicts, which can reduce discretionary consumer spending[159](index=159&type=chunk)[161](index=161&type=chunk) - Inflation in labor, materials, and services, potentially worsened by geopolitical events, could negatively impact profit margins if costs cannot be passed to consumers[162](index=162&type=chunk) - Global operations expose financial results to currency exchange rate fluctuations, especially for EUR, GBP, CNY, and BRL against USD[164](index=164&type=chunk) [Risks related to our Indebtedness](index=29&type=section&id=Risks%20related%20to%20our%20Indebtedness) - Substantial indebtedness and restrictive covenants limit operational and financial flexibility, including incurring debt, making acquisitions, and paying dividends[151](index=151&type=chunk)[152](index=152&type=chunk)[153](index=153&type=chunk) - Debt service and repayment depend on subsidiary cash flow, influenced by economic conditions and business performance beyond company control[156](index=156&type=chunk) - Variable interest rates on the 2018 Coty Credit Agreement expose the company to interest rate risk, increasing debt service and decreasing net income and cash flows with rate hikes[157](index=157&type=chunk) [Legal and Regulatory Risks](index=32&type=section&id=Legal%20and%20Regulatory%20Risks) - The company faces numerous lawsuits, including product liability claims for asbestos in talc-based cosmetics, potentially incurring significant costs and reputational damage[166](index=166&type=chunk) - Changes in IP, marketing, product content, environmental, and tax laws could negatively impact financial results and increase compliance costs[169](index=169&type=chunk) [Risks Related to Ownership of Our Common Stock](index=34&type=section&id=Risks%20Related%20to%20Ownership%20of%20Our%20Common%20Stock) - JAB Beauty B.V. and affiliates own approximately **54% of Class A Common Stock**, granting significant influence over corporate decisions that may not align with other stockholders' interests[182](index=182&type=chunk) - As a "controlled company" due to JAB's majority ownership, Coty is exempt from certain NYSE corporate governance requirements, including a majority of independent directors[184](index=184&type=chunk) - Forward repurchase contracts expose the company to stock price risks, with **$191.1 million** in cash "true-up" payments made in fiscal 2025 due to stock price declines[181](index=181&type=chunk) [Unresolved Staff Comments](index=36&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reported no unresolved staff comments from the SEC - None [Cybersecurity](index=36&type=section&id=Item%201C.%20Cybersecurity) Coty's cybersecurity program, overseen by the Global Information Security Team and Board committees, includes incident response and training, with no material threats identified to date - Cybersecurity governance involves a Global Information Security Team, overseen by the Board's Audit and Finance Committee and a dedicated Cybersecurity Special Committee[190](index=190&type=chunk)[194](index=194&type=chunk)[195](index=195&type=chunk) - Risk management includes regular incident simulations, tabletop exercises, and mandatory employee training to enhance preparedness[191](index=191&type=chunk)[192](index=192&type=chunk) - No cybersecurity threats have been identified that materially affected or are reasonably likely to materially affect operations or financial condition as of the report date[193](index=193&type=chunk) [Properties](index=37&type=section&id=Item%202.%20Properties) The company operates global owned and leased facilities for corporate, manufacturing, distribution, and R&D, with key locations in the U.S., Europe, and Brazil Principal Facilities | Location/Facility | Use | Segment | | --- | --- | --- | | New York, New York, U.S. (leased) | Corporate/Commercial | Corporate / Consumer Beauty | | Paris, France (2 locations) (leased) | Corporate/Commercial | Corporate / Prestige | | Barcelona, Spain (leased) | Corporate/Supply Chain | Corporate | | Chartres, France (owned) | Manufacturing | Prestige | | Granollers, Spain (owned) | Manufacturing | Prestige | | Hunt Valley, U.S. (owned) | Manufacturing | Consumer Beauty | | Sanford, North Carolina, U.S. (owned) | Manufacturing | Prestige | | Senador Canedo, Brazil (owned) | Manufacturing | Consumer Beauty | [Legal Proceedings](index=37&type=section&id=Item%203.%20Legal%20Proceedings) Legal matters are detailed in Note 22 to the Consolidated Financial Statements - Legal matters are detailed in Note 22—Legal and Other Contingencies of the Consolidated Financial Statements[200](index=200&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=37&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Coty's Class A Common Stock is dual-listed on NYSE and Euronext Paris, with dividends suspended since April 2020, and a recent **$200.0 million** share repurchase - The company's common stock is **dual-listed** on the NYSE and Euronext Paris[202](index=202&type=chunk) - Dividends on common stock were **suspended on April 29, 2020**, and remain suspended[204](index=204&type=chunk) - In February 2024, a forward repurchase contract was settled for **$200.0 million**, acquiring **27.0 million shares** of Class A Common Stock[212](index=212&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Fiscal 2025 saw a **4% revenue decline to $5.9 billion**, a **56% drop in operating income to $241.1 million**, and a **net loss of $367.9 million**, driven by impairments and a KKW agreement loss, while focusing on fragrance, cost reduction, and deleveraging amid market challenges [Overview](index=40&type=section&id=Overview) - The company's strategy leverages its **fragrance market leadership**, which accounted for over **65% of fiscal 2025 net revenues**, to drive expansion[216](index=216&type=chunk) - A new "Fixed Cost Reduction Plan" announced in April 2025 anticipates approximately **$80.0 million in cash costs**, mainly in fiscal 2026 and 2027[217](index=217&type=chunk) - Estimated additional costs from tariff increases are approximately **$70.0 million** before mitigation, with most impact expected in fiscal 2026[222](index=222&type=chunk) - Management forecasts a **low-single-digit decline in reported net revenue** for H1 fiscal 2026, with growth resuming in H2 driven by major product launches[227](index=227&type=chunk) [Results of Operations](index=46&type=section&id=Results%20of%20Operations) Fiscal 2025 vs. 2024 Performance Summary | Metric | Fiscal 2025 (Millions USD) | Fiscal 2024 (Millions USD) | Change (Millions USD) | Change % | | :--- | :--- | :--- | :--- | :--- | | Net Revenues | $5,892.9 | $6,118.0 | ($225.1) | (4%) | | Gross Profit | $3,820.9 | $3,939.2 | ($118.3) | (3%) | | Operating Income | $241.1 | $546.7 | ($305.6) | (56%) | | Net (Loss) Income Attributable to Coty Inc. | ($367.9) | $89.4 | ($457.3) | <(100%) | | Diluted EPS | ($0.44) | $0.09 | ($0.53) | <(100%) | - Fiscal 2025 saw **$212.8 million** in asset impairment charges, mainly for Max Factor, CoverGirl, Bourjois, and Philosophy trademarks[277](index=277&type=chunk) - Net other expense totaled **$371.7 million** in fiscal 2025, primarily from **$291.7 million** in net losses on forward repurchase contracts and an **$83.0 million** unfavorable Wella investment fair value adjustment[283](index=283&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=60&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) - Primary cash uses include operations, capital expenditures, interest, and debt reduction, with a focus on deleveraging the balance sheet using operating cash flow[298](index=298&type=chunk)[299](index=299&type=chunk) Cash Flow Summary | Cash Flow Activity | FY 2025 (Millions USD) | FY 2024 (Millions USD) | FY 2023 (Millions USD) | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $492.6 | $614.6 | $625.7 | | Net cash used in investing activities | ($128.4) | ($226.2) | ($118.2) | | Net cash used in financing activities | ($426.8) | ($336.7) | ($469.3) | - Operating cash flow decreased in fiscal 2025 due to higher cash outflows from working capital, specifically changes in accounts payable and inventories[317](index=317&type=chunk) - As of June 30, 2025, total debt was **$4.01 billion**, with plans to refinance 2026 notes including **$350.0 million** and **€700.0 million** of Senior Secured Notes[228](index=228&type=chunk)[306](index=306&type=chunk) [Critical Accounting Policies](index=65&type=section&id=Critical%20Accounting%20Policies) - Key subjective estimates encompass revenue recognition, Wella equity investment fair value, goodwill and intangibles impairment, inventory valuation, and income taxes[349](index=349&type=chunk) - Fiscal 2025 saw **$212.8 million** in trademark impairments; CoverGirl and Sally Hansen trademarks' fair values barely exceeded carrying values by **0.2%** and **2.5%** respectively as of May 1, 2025, indicating high future impairment risk[367](index=367&type=chunk)[368](index=368&type=chunk) - The Wella Company investment uses the fair value option, with changes recorded in earnings, relying on significant unobservable Level 3 inputs like discount rates and growth projections[353](index=353&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=69&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from foreign currency, interest rate, and inflation fluctuations, with details referenced from Item 7's "Liquidity and Capital Resources" section - The company is exposed to market risks including foreign currency fluctuations, interest rate changes, and inflation, detailed in Item 7 under specific risk management sections[381](index=381&type=chunk) [Financial Statements and Supplementary Data](index=69&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section incorporates the company's audited consolidated financial statements and supplementary data, starting on page F-1 - Required financial statements and supplementary data begin on page F-1 of the Annual Report[382](index=382&type=chunk) [Controls and Procedures](index=69&type=section&id=Item%209A.%20Controls%20and%20Procedures) As of June 30, 2025, the CEO and CFO concluded disclosure controls were effective, with no material changes to internal control over financial reporting in Q4 - As of June 30, 2025, management, including the CEO and CFO, concluded that disclosure controls and procedures were **effective** at a reasonable assurance level[384](index=384&type=chunk) - No material changes to internal control over financial reporting were identified during the fourth fiscal quarter[386](index=386&type=chunk) [Other Information](index=70&type=section&id=Item%209B.%20Other%20Information) No directors or Section 16 officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q4 fiscal 2025 - No directors or Section 16 reporting officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2025[388](index=388&type=chunk) [Disclosure Regarding Foreign Jurisdictions That Prevent Inspections](index=70&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20That%20Prevent%20Inspections) The company reported no issues under this item - None Part III This section incorporates information on directors, executive officers, corporate governance, compensation, security ownership, and related transactions by reference from the 2025 Proxy Statement [Directors, Executive Officers and Corporate Governance](index=70&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2025 Proxy Statement - Information on directors, executive officers, Section 16(a) compliance, and the code of ethics is incorporated by reference from the 2025 Proxy Statement[392](index=392&type=chunk)[393](index=393&type=chunk)[394](index=394&type=chunk)[395](index=395&type=chunk) [Executive Compensation](index=71&type=section&id=Item%2011.%20Executive%20Compensation) Executive and director compensation information is incorporated by reference from the 2025 Proxy Statement - Executive and director compensation information is incorporated by reference from the 2025 Proxy Statement[396](index=396&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=71&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership of beneficial owners and management is incorporated by reference from the 2025 Proxy Statement, with equity compensation plans referenced from Part II, Item 5 - Security ownership information for certain beneficial owners and management is incorporated by reference from the 2025 Proxy Statement[397](index=397&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=71&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on certain relationships, related party transactions, and director independence is incorporated by reference from the 2025 Proxy Statement - Information on certain relationships, related party transactions, and corporate governance is incorporated by reference from the 2025 Proxy Statement[398](index=398&type=chunk) [Principal Accounting Fees and Services](index=71&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Principal accounting fees and services information is incorporated by reference from the 2025 Proxy Statement - Principal accounting fees and services information is incorporated by reference from the "Audit Fees and Other Fees" section of the 2025 Proxy Statement[399](index=399&type=chunk) Part IV This section lists exhibits and financial statement schedules, noting no Form 10-K summary is provided [Exhibits, Financial Statement Schedules](index=71&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists all Form 10-K documents, including consolidated financial statements, schedules, and various exhibits - This item lists the consolidated financial statements, schedules, and all exhibits filed as part of the annual report[401](index=401&type=chunk)[402](index=402&type=chunk) [Form 10-K Summary](index=77&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company did not provide a Form 10-K summary - None

Core Viewpoint - Coty's latest quarterly report has led to a significant decline in its stock price, with investors reacting negatively to disappointing earnings and cautious guidance for the upcoming quarter [1][4]. Financial Performance - Coty reported a non-GAAP adjusted loss of $0.05 per share on sales of $1.25 billion, exceeding Wall Street's sales expectations by $40 million but falling short of earnings targets by $0.07 per share [4]. - The company's sales declined by 8.1% year over year in the quarter, indicating a weakening business performance [4][6]. Future Outlook - Management has reiterated guidance for like-for-like (LFL) sales to improve over the previous quarter, but expects a decline in LFL sales between 6% and 8% in fiscal Q1 [5]. - The outlook for earnings has worsened due to unexpected losses and anticipated sales declines in the current quarter [6].

Financial Performance - Coty reported an unexpected quarterly loss [1] Industry Trends - The beauty company attributed the loss to retailers being "cautious" [1]

Core Insights - Coty Inc. reported fourth-quarter fiscal 2025 results with net revenues of $1,252.4 million, an 8% decline year-over-year, and an adjusted loss of 5 cents per share, missing the Zacks Consensus Estimate of adjusted earnings of 1 cent [1][3][4] Financial Performance - The adjusted gross margin was 62.3%, down 190 basis points from the previous year, reflecting a normalization from elevated levels [5] - Adjusted operating income was $67.7 million, a 37% decline year-over-year, with an adjusted operating margin of 5.4%, down 250 basis points [6] - Adjusted EBITDA decreased 23% year-over-year to $126.7 million, with an adjusted EBITDA margin of 10.1%, down 200 basis points [7] Segment Performance - Prestige segment net revenues were $760.6 million, a 5% decline, with a 7% decline on a like-for-like basis, primarily due to underperformance in the U.S. market [8][10] - Consumer Beauty segment net revenues amounted to $491.8 million, a 12% decline on both reported and like-for-like basis, driven by weakness in color cosmetics and body care categories [12][13] Regional Revenue Results - Americas segment reported net revenues of $511.2 million, a 12% decline, with a 10% decline on a like-for-like basis, mainly due to lower Prestige revenues [15] - EMEA segment generated net revenues of $574.2 million, a 4% decline, with a 9% decline on a like-for-like basis [16] - Asia Pacific segment reported net revenues of $167 million, an 8% decline, with a 9% decline on a like-for-like basis, although sell-out in most markets grew significantly [17] Future Outlook - Coty is entering fiscal 2026 with a focus on innovation and expansion, expecting gradual improvement in sales trends, with like-for-like sales forecasted to decline 6-8% in the first quarter and 3-5% in the second quarter [20][21] - The company anticipates a return to adjusted EBITDA growth in the second half of fiscal 2026, supported by multiple product launches and geographic expansion [23]

Coty shares dipped 20.2% to trade at $3.8750 on Thursday. These analysts made changes to their price targets on Coty following earnings announcement. Considering buying COTY stock? Here's what analysts think: Coty Inc. COTY posted mixed fourth-quarter fiscal results after the closing bell on Wednesday. The global beauty company reported fourth quarter revenue of $1.25 billion, surpassing Wall Street estimates of $1.20 billion. Coty posted an adjusted loss of 5 cents per share for the quarter, missing analys ...

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