Financial Data and Key Metrics Changes - The company expects full-year EBITDA to be above $1 billion, despite headwinds from tariffs impacting gross margins [11][72] - The major gap in EBITDA for the full year is driven by tariffs, which if excluded, would result in slightly negative EBITDA [11][70] - Free cash flow is projected to grow in fiscal 2026 [12] Business Line Data and Key Metrics Changes - The prestige fragrance category remains healthy, with low to mid-single-digit growth, while mass fragrance is also performing well [7][21] - The skincare category outperformed the market by 11%, driven mainly by e-commerce, with Lancaster growing significantly in China [27][26] - The mass fragrance category accounts for approximately 7% of net revenues and is experiencing growth due to the Treatonomics phenomenon [20][21] Market Data and Key Metrics Changes - The Asian travel retail market is still heavily affected, but the beauty market in China is gradually improving, with prestige beauty showing positive growth [51] - The U.S. market is experiencing increased promotional activities, particularly in consumer beauty and color cosmetics [29][41] Company Strategy and Development Direction - The company is focusing on increasing profitability in the color cosmetics category while managing promotional activities cautiously [17][29] - There is a strategic emphasis on innovation, particularly in the fragrance category, with significant launches planned for the second half of the year [13][14] - The company aims to make travel retail a discovery channel for new products, enhancing exclusivity and consumer attraction [49][50] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current macroeconomic challenges but expresses confidence in returning to growth in the second half of fiscal 2026 [10][72] - The company is committed to divesting its stake in Velar and is actively contemplating options for this divestiture [62][102] - Management believes that the fragrance market will continue to grow, driven by consumer trends and the importance of scenting in daily life [39][40] Other Important Information - The company is implementing a new forecasting tool to improve inventory management and cash flow [81] - The management is focused on cash deleveraging as a top priority, with plans to refinance certain debts in 2026 [80][82] Q&A Session Summary Question: Can you provide more detail on the second half outlook? - Management expects sequential improvement in Q1 and Q2, with a return to growth in H2 as retailer inventory headwinds ease [6][10] Question: How is the company addressing the higher promotional environment? - The company is managing promotional activities cautiously and focusing on strategic revenue management to protect brand integrity [29][30] Question: What is the outlook for travel retail? - Travel retail is being positioned as a discovery channel, with exclusive product launches planned to attract consumers [49][50] Question: Are there any pullbacks in specific demographics for prestige fragrances? - Management reports no pullbacks in key demographics, with continued growth among Gen Z and Hispanic consumers [96][98] Question: What are the refinancing expectations around the 2026 maturity? - The refinancing will be consistent with the current secured structure, and the company is actively working on this [101][102]

Financial Data and Key Metrics Changes - The company expects full-year EBITDA to be above $1 billion, despite headwinds from tariffs impacting gross margins [10][71] - The major gap in EBITDA for the full year is driven by tariffs, which if excluded, would result in slightly negative EBITDA [10][71] - Free cash flow is projected to grow in fiscal 2026 [11] Business Line Data and Key Metrics Changes - The prestige fragrance category remains healthy, with low to mid-single-digit growth, while mass fragrance is also performing well [6][19] - The skincare category outperformed the market by 11%, driven mainly by e-commerce, with brands like Lancaster growing significantly in China [25] - The mass fragrance category accounts for approximately 7% of net revenues and is experiencing growth due to the Treatonomics phenomenon [19][20] Market Data and Key Metrics Changes - The Asian travel retail market is still heavily affected, but the beauty market in China is gradually improving, with prestige beauty showing positive growth [50] - The U.S. market is experiencing increased promotional activities, particularly in consumer beauty and color cosmetics [27][39] Company Strategy and Development Direction - The company is focusing on increasing profitability in the color cosmetics category while managing promotional activities carefully [16][27] - There is a strong emphasis on innovation, with significant product launches planned for the second half of the year, including the Hugo Boss Beyond bottle [12][19] - The company aims to make travel retail a discovery channel for new products, enhancing exclusivity and consumer attraction [48] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current volatility in the market but expresses confidence in returning to growth in the second half of fiscal 2026 [8][71] - The company is committed to divesting its stake in Velar and is actively contemplating options for this divestiture [61][100] - Management believes that the fragrance market will continue to grow, driven by consumer trends and the increasing importance of scenting [37][96] Other Important Information - The company is implementing a new forecasting tool to improve inventory management and cash flow [81] - The management is focused on cash deleveraging and maintaining a healthy trajectory on cash and refinancing [80][82] Q&A Session Summary Question: Can you provide more detail on the second half outlook? - Management expects sequential improvement in Q1 and Q2, with a return to growth in H2 as retailer inventory headwinds ease [6][8] Question: How is the company addressing innovation fatigue in color cosmetics? - The company is shifting focus to traditional advertising for key products while dedicating innovative products to younger consumers [16][17] Question: What is the outlook for travel retail? - Travel retail is being positioned as a discovery channel, with exclusive product launches planned to attract consumers [48][50] Question: How is the company managing promotional activities? - The company is managing promotional activities cautiously to protect brand integrity while exploring new formats like paint sprays [27][39] Question: What are the expectations for refinancing and deleveraging? - The company plans to maintain a secured structure for refinancing and is focused on improving EBITDA trends to support deleveraging [99][100]

Financial Performance & Strategic Transformation - Coty's Prestige fragrance leadership has strengthened, with sales reaching approximately $3.5 billion in FY25, reflecting a Compound Annual Growth Rate (CAGR) of 10% from FY21 to FY25[3,6] - Consumer Beauty stabilized and grew, achieving approximately $2.1 billion in sales in FY25, with a CAGR of 2% from FY21 to FY25[7,8] - Adjusted EBITDA reached $1.082 billion in FY25, representing an 18.4% margin, and a CAGR of 9% from FY21 to FY25[10] - The company delivered approximately $850 million in savings over five years[34] Challenges & Outlook - Coty faced challenges in CY25, including U.S execution weakness, retailer inventory build-up, and headwinds from lapping FY24 innovation[14,16] - Underperformance in the U.S significantly impacted FY25 results, with Coty revenues declining by mid-single digits percent in the U.S Prestige Beauty market (market growth of +4%) and by mid-teens percent in the U.S Mass Beauty market (market decline of -1%)[17] - For 1H FY26, the company anticipates a LFL revenue decline of 6% to 8% in 1Q26 and a LFL revenue decline of 3% to 5% in 2Q26[43] - Coty expects approximately inline to below the Q4 level of ~3.5x leverage in CY25[43] Strategic Focus & Initiatives - Coty is refocusing on core strengths, particularly fragrances, which already account for over 60% of revenues[46,48] - The company's e-commerce revenues reached $1 billion in FY25[115] - Coty is implementing AI across various functions, including marketing, supply chain, and finance[86,89]

Financial Performance - Total net revenues reached RMB 1086.7 million, a 36.8% year-over-year increase[24] - Skincare brands experienced significant revenue growth of 78.7% year-over-year, reaching RMB 581.3 million[24] - The company achieved a non-GAAP net income of RMB 11.5 million, compared to a non-GAAP net loss of RMB 74.9 million in the prior year period[26] - GAAP net loss was RMB 19.5 million, narrowed from a loss of RMB 85.5 million in the same period last year[26] - Gross margin increased by 1.5 percentage points year-over-year to 78.3%[10, 45] - Net cash generated from operating activities was RMB 77.7 million[10] Market and Brand Performance - Total retail sales of consumer goods in China grew by 5.4%, outpacing the 2.6% growth in beauty retail sales[19, 20, 21] - Combined net revenues for Galénic, DR.WU (mainland China business), and Eve Lom increased by 88.1% year-over-year[29] Operational Efficiency - Selling and marketing (S&M) expenses decreased as a percentage of total net revenues due to leveraging effect of higher total net revenues, from 68.6% to 66.5%[49, 51] - General and administrative (G&A) expenses also decreased as a percentage of total net revenues due to lower payroll expenses and higher total net revenues, from 15.0% to 7.7%[49, 51]

Market Positioning & Strategy - LVMH launched a $160 lipstick, generating both positive and negative buzz [1] - The industry observes this as a strategic move to reinforce LVMH's market position and lead [1] - The industry views the success of LVMH's $160 lipstick as uncertain, especially with Hermes setting a high standard with an $80 lipstick [1] Competitive Landscape - The market for $160 lipstick is considered virtually non-existent [1] - Hermes is positioned at the top of the market with an $80 lipstick [1]

分组1 - Coty reported a quarterly loss of $0.05 per share, missing the Zacks Consensus Estimate of $0.01, and compared to a loss of $0.03 per share a year ago, representing an earnings surprise of -600.00% [1] - The company posted revenues of $1.25 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.07%, but down from $1.36 billion year-over-year [2] - Coty shares have declined approximately 29.7% since the beginning of the year, while the S&P 500 has gained 9% [3] 分组2 - The earnings outlook for Coty is uncertain, with current consensus EPS estimates at $0.18 on $1.61 billion in revenues for the coming quarter and $0.50 on $5.92 billion in revenues for the current fiscal year [7] - The Zacks Industry Rank indicates that the Cosmetics industry is currently in the bottom 24% of over 250 Zacks industries, which may negatively impact Coty's stock performance [8] - The estimate revisions trend for Coty was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6]

Pricing Strategy - Estée Lauder is reducing prices on select products to stimulate sales [1] - This pricing adjustment is atypical, as many US consumer companies are increasing prices to mitigate tariff expenses [1]

Core Viewpoint - Estée Lauder is experiencing significant revenue declines amid a challenging global economy, leading to skepticism about future growth despite cost-cutting measures and a new management strategy [1][2]. Financial Performance - In Q4 2025, Estée Lauder reported a revenue decline of 11.9% to $3.41 billion, with adjusted earnings per share dropping 86% to $0.09, although these results were better than analysts' low expectations [3]. - The revenue decline was primarily driven by a 24% drop in sales in the Europe, Middle East, and Africa region, attributed to weak travel-related business from Chinese tourists [4]. Management and Strategy - The new CEO, Stéphane de La Faverie, has expanded the "Profit Recovery and Growth Plan" (PRGP), resulting in the reduction of 5,800 to 7,000 employees, which may be impacting current revenue [5]. - Despite the revenue challenges, management claims that adjusted gross margins have structurally improved over the past year [5]. Future Outlook - Management projects a revenue growth of 0% to 3% for the upcoming year on a constant currency basis, indicating a potential return to growth [7]. - The stock remains significantly below its all-time highs, trading at 40 times forward earnings, suggesting that investors will need to see substantial profit growth beyond the next year for a meaningful recovery [8].

Financial Performance - Estée Lauder shares are down in early trading [1] - The cosmetics company posted a wider-than-forecast quarterly loss [1] - The company has a disappointing outlook for the upcoming year [1]

Market Overview - The Nasdaq, S&P 500, and Russell 2000 are experiencing selling pressure, while the Dow is slightly positive, up 10 points (+0.02%) [1] Earnings Reports - Target (TGT) reported Q2 earnings of $2.05 per share on revenues of $25.21 billion, missing expectations by 4 cents, with revenues up 1.2% year-over-year [2] - Target announced the replacement of CEO Brian Cornell with Michael Fiddelke, effective February next year, leading to a pre-market drop of over 10% in TGT shares, compounding a year-to-date decline of 22% [3] - TJX Companies (TJX) reported earnings of $1.10 per share, beating expectations by 8.9%, with revenues of $14.4 billion exceeding consensus by 2.33%, resulting in a 4% increase in shares [4] - Lowe's (LOW) reported Q2 earnings of $4.33 per share, beating estimates by 10 cents, with revenues of $23.96 billion, a slight miss of 0.01%, and shares up 2.8% in pre-market trading [5] - Estee Lauder (EL) posted earnings of $0.09 per share, a one-penny beat, with revenues of $3.41 billion, a modest beat of 0.27%, but shares fell 5% due to disappointing outlook [6] Economic Events - The World Economic Symposium at Jackson Hole, Wyoming, begins today, featuring speeches from Fed officials, including Chris Waller and Raphael Bostic [7] - Fed Chair Jerome Powell is expected to deliver a speech on Friday, with analysts anticipating a neutral outlook on interest rates, currently at 4.25-4.50% [8]