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].
COTY STOCK NOTICE: Coty Inc. Investors with Losses may have been Affected by Securities Fraud – Contact BFA Law about its Pending Investigation