Workflow
COTY INVESTOR ALERT: Coty Inc. is Being Investigated for Securities Fraud after Excess Inventory Levels Lead to 21% Stock Drop – Investors Urged to Contact BFA
CotyCoty(US:COTY) Globenewswire·2025-09-24 12:46

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 is a major player in the beauty industry, with a diverse portfolio that includes fragrance, color cosmetics, and skin and body care products. Prestige fragrances represent 60% of the company's revenue [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 various factors, including consumer behavior and specific U.S. market conditions [3]. Stock Market Reaction - Following the release of the financial results, Coty's stock price fell by $1.05, a decline of over 21%, dropping from $4.86 to $3.81 per share within a day [3].