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 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 revenue [2]. 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 headwinds 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 challenges [3]. - 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 [3].
COTY STOCK: Coty Inc. Investigated for Securities Fraud after Excess Inventory Levels Cause 21% Stock Drop -- Investors Notified to Contact BFA Law