Key Takeaways COTY posted mixed Q2 results, with EPS missing estimates, while net revenues topped expectations.Margin pressure persisted from heavy promotions, tariffs, mix and lower Consumer Beauty volumes.Coty withdrew FY26 guidance, named an interim CEO and sold its Wella stake.Coty Inc. (COTY) delivered mixed results for the second quarter of fiscal 2026, as earnings fell short of expectations, while revenues topped estimates. The quarter reflected improving sales momentum compared to recent periods but ...

Core Insights - The company has demonstrated the benefits of its diversified business model over the past six months, achieving several one-year targets outlined in its refreshed strategic framework [1] Group Expansion - The company opened its first office in Cape Town, increasing its global presence to 19 offices across 13 countries [2] - Strong senior hires were made globally, including a new Head of Dry Cargo in Singapore and a Global Head of Tanker Operations [2] - The company is actively identifying and evaluating complementary acquisitions to enhance its operations [2] Security Business Development - The company launched its U.K. Organized Trading Facility (OTF) in May, marking a significant step in strengthening its Security business [3] - Progress is being made on the application for an EU OTF and to operate within the Dubai International Financial Center [3] - The company aims to leverage its established positions in coal, natural gas, and freight derivatives to capitalize on growth opportunities [3]

Core Business Performance - Holley Performance Brands reported a core business net sales growth of 3.9% in the second quarter of 2025 compared to the same period in 2024, marking the second consecutive quarter of growth [9][8] - The company's net sales decreased by 1.7% to $166.7 million from $169.5 million year-over-year [8][19] - New product launches contributed approximately $8 million in revenue during the second quarter [5] Financial Highlights - Net income for the second quarter was $10.9 million, or $0.09 per diluted share, down from $17.1 million, or $0.14 per diluted share, in the prior year [8][20] - Adjusted EBITDA for the quarter was $36.4 million, compared to $38.3 million in the previous year [8] - Free cash flow reached $35.7 million, the highest level in the company's history, compared to $24.4 million last year [8][15] Strategic Initiatives - The company successfully mitigated tariff impacts through strategic sourcing and pricing actions, leading to increased guidance visibility [6][15] - Holley has refined its full-year guidance for 2025, projecting net sales between $580 million and $595 million, reflecting a year-over-year growth of 0.8% to 3.4% [10] - The company achieved approximately 6.5% growth in its B2B channel and over 8.6% growth in direct-to-consumer orders during the second quarter [15] Operational Efficiency - Net cash provided by operating activities was $40.5 million, significantly higher than $25.7 million in the prior year [8][25] - The company reported a gross profit of $69.6 million, a slight decrease from $70.3 million year-over-year, but an increase in gross profit margin was noted [19] - Operating income for the second quarter was $27.5 million, compared to $27.9 million in the previous year [19]