Coty(US:COTY) Sou Hu Cai Jing·2026-02-11 08:15Core Viewpoint - Coty Inc. reported disappointing financial results for the second quarter of fiscal year 2026, reflecting the challenges faced under former CEO Sue Nabi's leadership, with a notable decline in net income and a significant drop in stock value during her tenure [1][2][10]. Financial Performance - For Q2 of fiscal year 2026 (October-December 2025), Coty achieved net revenues of $1.679 billion (approximately ¥11.649 billion), representing a 1% year-over-year increase, but a 3% decline on a like-for-like (LFL) basis [1][3][4]. - The net loss for the same period was $126.9 million (approximately ¥8.81 billion), marking a significant downturn compared to previous years [1][3][4]. - For the full year of 2025, Coty's total net revenue was $402.9 billion, a 4.66% decrease from $422.61 billion in 2024, marking the first decline in net revenue in five years [10][11]. Segment Performance - The Prestige segment, which includes brands like Chloé and Hugo Boss, reported net revenues of $1.133 billion, a 2% increase year-over-year, but a 2% decline on an LFL basis [12][14]. - The Consumer Beauty segment saw a 2% decline in net revenues, contributing $545 million, with a 6% drop on an LFL basis [12][14]. - The overall operating income reported a 45% decrease, while adjusted operating income fell by 18% [4][12]. Regional Performance - In the EMEA region, Coty recorded net revenues of $864.2 million, a 3% increase year-over-year, but a 4% decline on an LFL basis [16][17]. - The Americas region experienced a 2% decline in net revenues, totaling $624.5 million, with a 3% drop on an LFL basis [16][17]. - The Asia Pacific region reported a slight decline of 1% in net revenues, amounting to $189.9 million, with a 2% drop on an LFL basis [16][17]. Leadership Changes - Following Sue Nabi's departure in December, Markus Strobel was appointed as the new Executive Chairman and interim CEO, taking office on January 1, 2026 [1][2]. - Strobel acknowledged the disappointing financial performance and the impact on Coty's stock price, which has been fluctuating between $3 and $5 [17][21]. Strategic Challenges - Coty is facing significant challenges due to the loss of brand licensing agreements, which are critical to its revenue model. The company has recently terminated agreements with brands like Orveda and Wella, and is set to lose the Gucci beauty license to L'Oréal [18][19][20]. - The company has initiated a new strategic framework called "Coty Select" to focus on clearer priorities and improve execution in its core business areas [20][21].