NEW YORK, Oct. 24, 2025 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into Coty Inc. (NYSE: COTY) for potential violations of the federal securities laws. If you invested in Coty, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/coty-inc-class-action. Why Is Coty being Investigated?Coty is one of the world’s largest beauty companies with a portfolio of brands across fragrance, color cosmetics, and skin and b ...

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]. Group 1: 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 [2]. - Prestige fragrances represent 60% of Coty's revenues, indicating a significant reliance on this segment [2]. Group 2: Financial Performance - On August 20, 2025, Coty reported disappointing financial results for Q4 and FY 2025, citing issues such as weaknesses in U.S. execution and retailer inventory buildup [3]. - The company's stock price fell by $1.05, a decline of over 21%, from $4.86 to $3.81 per share following the announcement of these results [3]. Group 3: Market Dynamics - Coty claimed strong demand for its Prestige fragrances, but evidence suggests that retailers were actually overstocked due to declining demand for Coty's products [2]. - The company faced a slowdown in cosmetics sales attributed to value-seeking consumer behavior and specific U.S. market challenges [3].

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]. Group 1: 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 [2]. - Prestige fragrances represent 60% of Coty's revenues, highlighting the significance of this segment to the company's financial health [2]. Group 2: Financial Performance - On August 20, 2025, Coty reported disappointing financial results for Q4 and FY 2025, citing issues such as weaknesses in U.S. execution, retailer inventory buildup, and challenges from previous fiscal year innovations [3]. - The company's stock price fell by $1.05, a decline of over 21%, from $4.86 to $3.81 per share following the announcement of these results [3]. Group 3: Market Dynamics - The investigation stems from claims that Coty misrepresented the demand for its products, as retailers were reportedly overstocked due to a decline in actual demand [2]. - Factors contributing to the slowdown in cosmetics sales included value-seeking consumer behavior, fatigue with innovation, and specific U.S. market challenges such as in-store theft measures and immigration policy changes [3].

Core Insights - Coty Inc. is under investigation for potential violations of federal securities laws, as announced by Bleichmar Fonti & Auld LLP [1][2] - The investigation arises amid concerns over Coty's reported demand for Prestige fragrances, which constitute 60% of its revenues, while actual retailer inventory levels suggest overstocking due to declining demand [2] Financial Performance - Coty reported disappointing financial results for Q4 and FY 2025, citing issues such as weaknesses in U.S. execution, retailer inventory buildup, and headwinds from previous fiscal year innovations [3] - The company's stock price fell by $1.05, a decline of over 21%, from $4.86 on August 20, 2025, to $3.81 on August 21, 2025, following the release of these results [3]

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 is a major player in the beauty industry, 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 weaknesses in U.S. execution, retailer inventory buildup, and challenges from previous fiscal year innovations. The company noted a slowdown in cosmetics sales due to various factors, including consumer behavior and specific U.S. market conditions [3]. Stock Market Reaction - Following the release of the financial results, Coty's stock price fell by $1.05, a decline of over 21%, dropping from $4.86 to $3.81 per share within a day [3].

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]. Group 1: 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 [2]. - Prestige fragrances represent 60% of Coty's revenues, indicating a significant reliance on this segment [2]. Group 2: Financial Performance - On August 20, 2025, Coty reported disappointing financial results for Q4 and FY 2025, citing issues such as weaknesses in U.S. execution and retailer inventory buildup [3]. - The company's stock price fell by $1.05, a decline of over 21%, from $4.86 to $3.81 per share following the announcement of these results [3]. Group 3: Market Dynamics - Coty indicated that the slowdown in cosmetics sales was influenced by value-seeking consumer behavior, fatigue with innovation, and specific U.S. factors such as in-store security measures and immigration policy changes [3].