Core Insights - Coty Inc. reported fourth-quarter fiscal 2025 results with net revenues of $1,252.4 million, an 8% decline year-over-year, and an adjusted loss of 5 cents per share, missing the Zacks Consensus Estimate of adjusted earnings of 1 cent [1][3][4] Financial Performance - The adjusted gross margin was 62.3%, down 190 basis points from the previous year, reflecting a normalization from elevated levels [5] - Adjusted operating income was $67.7 million, a 37% decline year-over-year, with an adjusted operating margin of 5.4%, down 250 basis points [6] - Adjusted EBITDA decreased 23% year-over-year to $126.7 million, with an adjusted EBITDA margin of 10.1%, down 200 basis points [7] Segment Performance - Prestige segment net revenues were $760.6 million, a 5% decline, with a 7% decline on a like-for-like basis, primarily due to underperformance in the U.S. market [8][10] - Consumer Beauty segment net revenues amounted to $491.8 million, a 12% decline on both reported and like-for-like basis, driven by weakness in color cosmetics and body care categories [12][13] Regional Revenue Results - Americas segment reported net revenues of $511.2 million, a 12% decline, with a 10% decline on a like-for-like basis, mainly due to lower Prestige revenues [15] - EMEA segment generated net revenues of $574.2 million, a 4% decline, with a 9% decline on a like-for-like basis [16] - Asia Pacific segment reported net revenues of $167 million, an 8% decline, with a 9% decline on a like-for-like basis, although sell-out in most markets grew significantly [17] Future Outlook - Coty is entering fiscal 2026 with a focus on innovation and expansion, expecting gradual improvement in sales trends, with like-for-like sales forecasted to decline 6-8% in the first quarter and 3-5% in the second quarter [20][21] - The company anticipates a return to adjusted EBITDA growth in the second half of fiscal 2026, supported by multiple product launches and geographic expansion [23]