Coty(US:COTY) Newsfileยท2025-11-12 12:17Core Viewpoint - Coty Inc. is under investigation for potential violations of federal securities laws, which may allow investors to recover losses due to misleading statements regarding product demand and inventory levels [1][3]. Company Overview - Coty Inc. is one of the largest beauty companies globally, with a diverse portfolio that includes fragrances, color cosmetics, and skin and body care products. Prestige fragrances represent 60% of the company's revenues [3]. Investigation Details - The investigation is prompted by discrepancies between Coty's claims about strong demand for Prestige fragrances and the reality of overstocked inventory at retailers, indicating a decline in demand for Coty's products [3]. Financial Performance - On August 20, 2025, 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 challenges from previous fiscal year innovations. The company noted a slowdown in cosmetics sales due to various factors, including value-seeking behavior and U.S.-specific issues [4]. - 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 within a day [4].