Core Insights - Coty Inc. is expected to report a decline in revenue for the fourth quarter of fiscal 2025, with the Zacks Consensus Estimate at $1.2 billion, reflecting a 12% decrease from the previous year [1] - The earnings consensus has remained stable at two cents per share, indicating a recovery from a loss of three cents in the same quarter last year [2] - Coty's strategic initiatives, including expanding its prestige fragrance portfolio and enhancing digital capabilities, are anticipated to support performance despite challenges [3][4] Revenue and Earnings Performance - The fragrance segment continues to be a key revenue driver for Coty, with management focused on optimizing the cost structure [4] - However, the company faces significant challenges in markets such as China, Travel Retail Asia, and U.S. Consumer Beauty, with expected organic LFL revenue decline of 9.3% for the fourth quarter [5] - Higher advertising and promotional spending, along with currency headwinds, are likely to negatively impact the upcoming quarter's results [5][10] Earnings Predictions - The current model does not predict an earnings beat for Coty, with an Earnings ESP of 0.00% and a Zacks Rank of 3 [6] - Comparatively, other companies like Estée Lauder are also expected to see declines in both revenue and earnings, with a consensus revenue estimate of $3.4 billion, down 12.2% year-over-year [8]
Coty's Q4 Earnings on The Horizon: Essential Insights for Investors