COTY

It has been about a month since the last earnings report for Coty (COTY). Shares have lost about 10.6% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Coty due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts. Coty posted a fourth-quarter fiscal 2026 adjusted loss of two cents per share, improving 60% from the year-ago loss of five cents. The result was wider than the Zacks Consensus Estimate of a one-cent loss.Net revenues rose 1% year over year to $1,269.2 million and beat the consensus estimate of $1,193 million. Reported sales included a 3% foreign-exchange benefit, while like-for-like (LFL) revenues dipped 1%.Reported and adjusted gross margin was 60.9%, down 140 basis points year over year. Lower cost absorption from soft volumes, elevated excess and obsolescence charges in both divisions and tariffs weighed on profitability.Adjusted operating income fell 42% year over year to $39.5 million, while adjusted operating margin contracted 230 basis points year over year to 3.1%. Adjusted EBITDA declined 26% to $93.6 million, with the margin shrinking 270 basis points to 7.4%. Prestige revenues increased 1% on a reported basis to $771.8 million and represented 61% of total sales. Foreign exchange added 2%, while LFL revenues slipped 0.5%, consisting of an estimated 1.5% Middle East conflict headwind. Higher Prestige cosmetics and fragrance sales were partly offset by lower skincare sales. Adjusted operating income decreased 19% year over year to $60.2 million. Reported operating performance faced pressure from lower fragrance shipments, tariff costs, weaker cost absorption and higher fixed costs. Consumer Beauty revenues advanced 1% year over year to $497.4 million and accounted for 39% of total sales. The segment benefited 4% from foreign exchange, but LFL revenues fell 3%, including an estimated 1% Middle East headwind. Mass body and skincare sales increased, partly offset by lower mass color cosmetics sales. The adjusted operating loss widened to $20.7 million from a loss of $7 million, while adjusted EBITDA fell 67% to $7.8 million. Americas revenues climbed 9% year over year to $554.7 million and increased 6% on an LFL basis. Growth was driven by the United States, Brazil and regional Travel Retail, partly offset by soft sales in Canada.EMEA revenues dropped 8% year over year to $528.9 million and declined 10% on an LFL basis, reflecting weakness in the Middle East, Germany and Central and Eastern Europe. Asia Pacific revenues rose 11% to $185.6 million and increased 7% on a LFL basis, supported by China, Southeast Asia, Australia and New Zealand and the regional Travel Retail channel. Cash flow from operating activities increased to $116 million from $83.2 million a year earlier. Free cash flow more than doubled to $72.6 million from $34.9 million. For fiscal 2026, operating cash flow rose to $537.8 million from $492.6 million a year ago, and free cash flow increased to $348.2 million from $277.6 million. Total debt declined to $3.1 billion as of June 30, 2026, from $3.2 billion at March 31, 2026. Financial net debt decreased to $2.91 billion from $2.96 billion over the same period, while the financial leverage ratio stood at 3.4 times. Coty agreed with Kering on an early transition of the Gucci Beauty license. The company received $250 million at signing and is set to receive another $150 million no later than Sept. 30, 2027, with up to $30 million contingent on certain criteria.The company will continue operating the Gucci Beauty brand through at least June 30, 2027. Its mitigation plans include accelerating core brands, maximizing newer portfolio additions and pursuing a significant fixed-cost reduction program. Coty continues to advance its Coty.Curated framework, focusing on sharper portfolio management and stronger execution to drive growth and enhance brand performance. Coty is gaining momentum across Prestige and Consumer Beauty, driven by successful new launches, strong consumer response to Marc Jacobs Beauty and improving U.S. sell-out trends for CoverGirl and Sally Hansen. For the first quarter of fiscal 2027, Coty expects LFL revenues to decrease by a low- to mid-single-digit percentage, with foreign exchange having a neutral reported-revenue impact. Adjusted gross margin is projected to fall 50-100 basis points year over year, while adjusted EBITDA is expected to decline by a low-teens percentage. Management expects first-quarter adjusted earnings, excluding the equity swap, of 11-13 cents per share. First-half fiscal 2027 free cash flow is projected to exceed $300 million.Fiscal 2027 is expected to mark a transition toward stronger execution, as Coty advances its strategic review and implements Coty.Curated, with first-quarter EBITDA trends showing sequential improvement from year-over-year trends in the second half of fiscal 2026. Since the earnings release, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted -9.76% due to these changes. At this time, Coty has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Coty has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Coty (COTY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at personal care stocks, starting with Coty (NYSE:COTY). While personal care products may seem more discretionary than food, consumers tend to maintain or even boost their spending on the category during tough times. This phenomenon is known as "the lipstick effect" by economists, which states that consumers still want some semblance of affordable luxuries like beauty and wellness when the economy is sputtering. Consumer tastes are constantly changing, and personal care companies are currently responding to the public’s increased desire for ethically produced goods by featuring natural ingredients in their products. The 9 personal care stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was 1.5% above. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7.2% since the latest earnings results. With a portfolio boasting many household brands, Coty (NYSE:COTY) is a beauty products powerhouse spanning cosmetics, fragrances, and skincare. Coty reported revenues of $1.27 billion, up 1.3% year on year. This print exceeded analysts’ expectations by 5.7%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EBITDA estimates. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 13% since reporting and currently trades at $2.64. Is now the time to buy Coty? Access our full analysis of the earnings results here, it’s free. Short for "eyes, lips, face", e.l.f. Beauty (NYSE:ELF) is a developer of high-quality beauty products at accessible price points. e.l.f. Beauty reported revenues of $479.4 million, up 35.5% year on year, outperforming analysts’ expectations by 11%. The business had a stunning quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates. e.l.f. Beauty pulled off the biggest analyst estimate beat, fastest revenue growth, and highest full-year guidance raise of the whole group. The market seems happy with the results as the stock is up 8.3% since reporting. It currently trades at $93.51. Is now the time to buy e.l.f. Beauty? Access our full analysis of the earnings results here, it’s free. Started on a kitchen table in Utah, Nature’s Sunshine (NASDAQ:NATR) manufactures and sells nutritional and personal care products. Nature's Sunshine reported revenues of $117 million, up 1.9% year on year, falling short of analysts’ expectations by 5.4%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates. Nature's Sunshine delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 35.6% since the results and currently trades at $13.09. Read our full analysis of Nature's Sunshine’s results here. Known for its Optavia program that combines portion-controlled meal replacements with coaching, Medifast (NYSE:MED) has a broad product portfolio of bars, snacks, drinks, and desserts for those looking to lose weight or consume healthier foods. Medifast reported revenues of $76.38 million, down 27.6% year on year. This number surpassed analysts’ expectations by 5.1%. Overall, it was a stunning quarter as it also produced EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates. Medifast scored the highest guidance raise but had the slowest revenue growth among its peers. The stock is up 22.8% since reporting and currently trades at $11.96. Read our full, actionable report on Medifast here, it’s free. Going to market with a direct selling model rather than through traditional retailers, USANA Health Sciences (NYSE:USNA) manufactures and sells nutritional, personal care, and skincare products. USANA reported revenues of $223.3 million, down 5.3% year on year. This print missed analysts’ expectations by 5%. More broadly, it was a mixed quarter as it also logged a solid beat of analysts’ EBITDA estimates but a significant miss of analysts’ EPS estimates. The stock is down 35.4% since reporting and currently trades at $14.71. Read our full, actionable report on USANA here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

On August 19, 2026, Coty Inc. (NYSE:COTY)'s fiscal fourth-quarter net revenue rose 1.3% to $1.27 billion in the quarter ended June 30, beating the average analyst estimate for a 4.6% decline, Reuters reported. Bloomberg said the total included a 3% currency tailwind, and like-for-like revenue actually fell 1%, the seventh straight decline but the smallest in 18 months. Adjusted loss per share narrowed to 2 cents from 5 cents but still missed the 1-cent loss expected. Coty withheld full-year guidance and called fiscal 2027 a "transition year" amid the Gucci exit. Shares fell 7% in extended trading. Coty actually beat the revenue estimate that mattered most this quarter, yet withholding full-year guidance while rivals like Estée Lauder issue confident forecasts sent a clear signal to investors. Coty's beat points to real demand, not an easy comparison. It topped Bloomberg's $1.19 billion consensus and beat Reuters' 4.6% decline estimate, even before currency helped. Like-for-like revenue's 1% decline was also the smallest in 18 months, a "significant sequential improvement," Coty said. Coty Inc. (NYSE:COTY) also sits in the strongest-growing part of the beauty industry. Rival Estee Lauder's fragrance business posted double-digit organic growth in the same fiscal year, helping drive its full-year net sales up 5% to about $15 billion, the company reported. Prestige fragrance outgrowing the rest of beauty favors Coty's fragrance-heavy portfolio. Coty's cost program is delivering real, structural savings, not just cuts to survive one bad year. The "All-in to Win" initiative generated more than $250 million in productivity and fixed-cost savings in fiscal 2026, ahead of target, and underlying fixed costs fell 4% even as inflation rose, Coty said. That kind of structural discipline supports margin recovery even if revenue growth stays slow. Coty's balance sheet is strengthening too since free cash flow rose to $348.2 million in fiscal 2026 from $277.6 million, and total debt fell to $3.09 billion from $3.22 billion. That growing cushion funds restructuring internally rather than needing fresh capital. The Gucci exit itself brings in cash: $250 million at signing and $150 million more by September 2027. Coty will use this cash to pay down debt and fund internal restructuring while management pursues a strategic review of slower brands like CoverGirl and Rimmel. The headline beat shrinks once currency comes out. Reported revenue rose 1.3%, but that included a 3% currency benefit, Bloomberg said, and like-for-like revenue actually fell 1%, the seventh straight quarterly decline. The weakness was concentrated in the Middle East, Germany, and Central and Eastern Europe, where revenue fell $45.3 million year over year, Coty said. The Gucci exit could create a lasting earnings gap as Coty gives up a recovering brand and its future growth potential. Kering bought back the license early for $400 million and signed a 50-year master deal with L'Oréal to run global operations after Coty's transition period ends. Profitability moved the wrong way even as revenue stabilized since adjusted loss per share came in at 2 cents, wider than the 1-cent loss expected. Adjusted gross margin fell 140 basis points to 60.9%, and adjusted EBITDA dropped 26% to $93.6 million. Full-year net loss widened to $618.0 million from $381.1 million. Coty Inc. (NYSE:COTY) is also losing ground in a market that is otherwise growing. It is underperforming a growing beauty market. Prestige beauty grew about 6% and mass beauty about 5% in the second half of fiscal 2026, yet Coty's own sellout fell 1% in Prestige and 2% in Consumer Beauty over that period. That gap hit profitability directly: Consumer Beauty adjusted EBITDA fell 67% year over year in the fourth quarter, though it improved $32 million sequentially from the third quarter. Guidance disappointed more than the quarter itself. Coty withheld full-year forecasts and guided to just 11 to 13 cents in adjusted earnings, below the 14-cent estimate, while peers Estee Lauder and Elf Beauty gave confident outlooks. Investors typically read a withheld number as management's own uncertainty, which likely explains the 7% drop despite the beat. Coty Inc. (NYSE:COTY) was held by 32 hedge funds as of Q1 2026, down from 35. For comparison, larger rival Estée Lauder was held by 47. Coty Inc. (NYSE:COTY)'s fourth quarter shows improvement, but not enough yet. The revenue beat is real, though the basic business is still shrinking once currency and regional weakness are stripped out. Coty is losing share even in a growing category, with its weakest division's profitability collapsing. The 7% stock drop shows investors weighing execution risk, a stronger rival inheriting Gucci, and an unresolved portfolio review over one good quarter. While we acknowledge the potential of COTY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: BP p.l.c. (BP) vs. Shell plc (SHEL): Two Oil Majors Cash In on the Iran War, But Tell Different Stories and ArcelorMittal (MT) vs. Microsoft Corporation (MSFT): A Steel Giant Bets Its Future on Azure. Disclosure: None. This article is originally published at Insider Monkey.

Coty’s results for Q2 reflected a challenging environment, with the market reacting negatively to both margin pressures and a non-GAAP loss that missed Wall Street’s consensus. Management attributed the softness to a lag in sell-out performance compared to category peers and a transition from a historical sell-in focus toward driving true market share gains. Interim CEO Markus Strobel was candid about the need for change, stating, “Our objective is to drive sell-out and to drive market share,” and acknowledging that this shift would take time. The quarter was also marked by ongoing SKU rationalizations and operational adjustments aimed at reducing excess inventory and returns, particularly within the U.S. consumer business. Is now the time to buy COTY? Find out in our full research report (it’s free). Revenue: $1.27 billion vs analyst estimates of $1.2 billion (1.3% year-on-year growth, 5.7% beat) Adjusted EPS: -$0.02 vs analyst estimates of -$0.01 ($0.01 miss) Adjusted EBITDA: $93.6 million vs analyst estimates of $88.86 million (7.4% margin, 5.3% beat) Operating Margin: -3.4%, down from 1.2% in the same quarter last year Organic Revenue fell 1% year on year (beat) Market Capitalization: $2.35 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Filippo Falorni (Citi) asked about key performance indicators for the transition year and potential upside risks; CEO Markus Strobel stressed the focus on market share sell-out and stated that upside depends on the speed of adoption and external cost factors. Javier Escalante (Evercore ISI) inquired about the timing and impact of SKU rationalization and capital spending in the U.S. and Europe; Strobel explained the phased rollout of SKU reductions and shelf resets, noting early success in the U.S. and plans to replicate improvements in Europe. Anna Lizzul (Bank of America) questioned the promotional environment and strategic review timeline for Consumer Beauty; Strobel described a more surgical approach to pricing and reaffirmed the goal of completing the review by year-end, while allowing flexibility based on outcomes. Susan Anderson (Canaccord Genuity) asked what is driving U.S. consumer brand improvements; Strobel attributed gains to focused advertising and innovation in key franchises, while CFO Laurent Mercier cited renewed growth in Brazil and early progress in Europe. Stephen Powers (Deutsche Bank) pressed for details on mitigating the profit impact from the Gucci exit; Strobel outlined a “belt and suspenders” approach, combining growth in other brands with a comprehensive restructuring program to address fixed costs. In future quarters, the StockStory team will be watching (1) the rollout and traction of SKU rationalization and shelf resets across European brands, (2) the pace at which sell-out-focused initiatives translate into market share gains and reduced inventory swings, and (3) progress on cost reduction programs and the outcome of the Consumer Beauty strategic review. Key innovations in core franchises and the effectiveness of targeted marketing will also be important milestones. Coty currently trades at $2.66, down from $3.03 just before the earnings. Is there an opportunity in the stock? Find out in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Interested in Coty? Here are five stocks we like better. Fourth-quarter sales improved sequentially, with like-for-like revenue down 1%, better than Coty’s expected mid-single-digit decline. However, full-year like-for-like sales fell 5%, and Coty continued to underperform broader beauty-market growth. Profitability remained pressured: fourth-quarter adjusted gross margin fell 140 basis points, while adjusted EBITDA declined 26% year over year. Coty still generated more than $250 million in fiscal 2026 productivity savings and reduced net debt by nearly $840 million to $2.9 billion. Coty expects fiscal 2027 to be a transition year, with first-quarter sales projected to decline at a low- to mid-single-digit rate and EBITDA down in the low teens. The company is preparing for the Gucci Beauty license exit in fiscal 2028, using proceeds to reduce debt, invest in core brands and streamline costs. 3 Beauty Stocks Off to an Ugly Start—Can 1 Stage a Comeback? Coty (NYSE:COTY) said its fourth-quarter fiscal 2026 results exceeded its expectations, although the beauty company continued to report lower sales and profitability as it prepares for a transition year centered on portfolio simplification, cost reductions and investment behind core brands. Executive Chairman and Interim Chief Executive Officer Markus Strobel said the company’s fourth-quarter performance was “an encouraging step” toward more consistent execution, while acknowledging that the business remains below its targeted performance level. Coty plans to use fiscal 2027 to strengthen core franchises, streamline its organization and prepare for the exit of the Gucci Beauty license in fiscal 2028. → Looking Beyond CrowdStrike? 3 AI Security Stocks Stand Out Rebalancing in 2025: Here Are 3 Stocks to Buy Under $10 Chief Financial Officer Laurent Mercier said fourth-quarter like-for-like sales declined 1%, improving from prior trends and outperforming Coty’s expectation for a mid-single-digit decline. The result reflected stronger-than-anticipated customer orders in the U.S. across prestige fragrances and mass cosmetics, along with a smaller-than-expected effect from the Middle East conflict. The Middle East conflict reduced fourth-quarter total sales by slightly more than 1%, compared with Coty’s prior estimate of a 2% to 3% impact. For the full fiscal year, like-for-like sales fell 5%. → 3 Robotics Stocks Under $10: Value, Momentum, or Bet? Estée Lauder undergoes a profit makeover to swoon investors Prestige like-for-like revenue declined 0.5% in the fourth quarter, while prestige fragrance revenue fell 1%. Prestige cosmetics posted double-digit sales and sellout growth, supported by Kylie, Burberry and the early contribution from Marc Jacobs makeup. Coty cited momentum from launches including Boss Bottled Beyond, Cosmic Kylie Jenner Intense and Calvin Klein Euphoria Elixir. Consumer Beauty like-for-like sales declined 3% in the fourth quarter, but the company said trends improved sequentially. Sally Hansen returned to sales growth, while COVERGIRL’s sellout trends improved and Rimmel gained volume market share in the U.K. during the latest three-month period. Lifestyle fragrances remained pressured, though sales trends improved from earlier quarters. → Michael Burry Is Betting Against Palantir Again—Should Investors Care? Mercier said Coty’s sellout performance remained below broader beauty-market growth in both divisions during the second half of fiscal 2026. The prestige market grew approximately 6% in that period, while mass beauty grew about 5%. Coty’s prestige sellout declined 1% and Consumer Beauty sellout fell 2%. Adjusted gross margin was 60.9% in the fourth quarter, down 140 basis points year over year. For fiscal 2026, adjusted gross margin was 63%, down 190 basis points. Coty attributed the decline to lower-volume cost absorption, elevated excess and obsolescence in both divisions, and tariffs. Adjusted EBITDA fell 26% year over year in the fourth quarter and declined 22% for the full year. The company said top-line pressure, lower gross margins and the year-over-year effect of variable compensation weighed on earnings. Adjusted earnings per share, excluding the equity swap, were breakeven in the fourth quarter and $0.34 for the full fiscal year. Prestige adjusted EBITDA declined 17% in the quarter and 12% for the full year, though the division maintained a 20.5% adjusted EBITDA margin for fiscal 2026. Consumer Beauty adjusted EBITDA fell 67% year over year in the fourth quarter, reflecting lower sales, supply-chain cost under-absorption, excess and obsolescence, and tariff costs. However, Consumer Beauty EBITDA improved by $32 million sequentially from the third quarter. Coty’s All-in to Win program generated more than $250 million in productivity and fixed-cost savings during fiscal 2026, ahead of its target. Underlying fixed costs fell 4% year over year despite inflation, the company said. Coty expects to accelerate savings initiatives in fiscal 2027 as it further rightsizes its cost structure. Despite a decline of more than $200 million in fiscal 2026 EBITDA, Coty generated $348 million in free cash flow, up roughly $70 million from the prior year and above its guidance. The company attributed the result to working-capital discipline, lower cash bonuses, a $34 million reduction in cash interest paid and $25 million lower capital expenditures. Net debt stood at $2.9 billion at the end of fiscal 2026, down nearly $840 million year over year. That balance did not include the first tranche of proceeds from Coty’s Gucci agreement received in July. The company exited the year with leverage of about 3.4 times and continues to target leverage of roughly two times over time. For the first quarter of fiscal 2027, Coty expects like-for-like revenue to decline by a low- to mid-single-digit percentage. Foreign exchange is expected to be neutral. The company forecast an adjusted gross-margin decline of approximately 50 to 100 basis points and an adjusted EBITDA decline in the low-teens percentage range. Adjusted EPS, excluding the equity swap, is expected to be $0.11 to $0.13 per share. Coty expects more than $300 million in free cash flow during the first half of fiscal 2027. The company did not provide full-year guidance, citing the early stage of its Coty.Curated strategy, uneven quarterly performance and its ongoing strategic review. Strobel said Coty is planning for Gucci Beauty to leave its portfolio by fiscal 2028. Under its agreement with Kering, Coty received $250 million at signing and expects another $150 million by Sept. 30, 2027, in addition to inventory proceeds. Gucci Beauty represents a low-double-digit percentage of Coty’s total revenue and has profitability broadly in line with the Prestige division, according to the company. Coty intends to use the proceeds to reduce debt, invest in core prestige brands and fund organizational optimization. It is developing a fixed-cost savings program expected to begin in the second half of fiscal 2027, targeting its go-to-market structure, manufacturing and distribution footprint, organizational layers and central functions. The company is also planning larger innovation efforts around brands including Burberry, Hugo Boss, Calvin Klein, Marc Jacobs, Chloé and Kylie, alongside launches in Etro, Swarovski and Marni fragrances. Coty said its objective is to return the underlying portfolio excluding Gucci to growth in fiscal 2028, moderate the mechanical EBITDA decline associated with the Gucci exit, and resume profit recovery in fiscal 2029 and beyond. Coty Inc is a multinational beauty company specializing in the development, manufacturing and marketing of fragrances, color cosmetics and skin and body care products. Established in 1904 by François Coty in Paris, the company has grown through a blend of organic innovation and strategic acquisitions to become one of the leading players in the global beauty industry. Coty's portfolio encompasses a broad range of consumer and luxury brands, reflecting its commitment to catering to diverse consumer preferences and market segments. The company's product offerings span three main divisions: Coty Luxury, Coty Consumer Beauty and Coty Professional Beauty. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Coty Q4 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Fiscal Period: Fourth quarter fiscal 2026, with results discussed on August 20, 2026. Revenue: Financial results for the fourth quarter fiscal 2026 were discussed, with specific revenue figures detailed in the company's press release and prepared remarks. Non-GAAP Adjustments: Financial results and expectations reflect certain adjustments as specified in the non-GAAP financial measures section of the company's release. Warning! GuruFocus has detected 3 Warning Sign with COTY. Is COTY fairly valued? Test your thesis with our free DCF calculator. Release Date: August 20, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Coty Inc (NYSE:COTY) is seeing strong early traction in its U.S. consumer beauty business, with CoverGirl and Sally Hansen significantly closing the sellout gap versus the market, and Sally Hansen now growing ahead of the market in value. The company has successfully renegotiated the Gucci license exit on favorable terms, securing full compensation for a year of profit and cash, funds for debt reduction and restructuring, and a solution for inventory. Coty Inc (NYSE:COTY) is implementing a disciplined 'Color the Future' program, focusing on fewer, more powerful innovations and reducing SKUs by 20%, which is expected to reduce returns and obsolescence, boosting EBITDA over time. The company is shifting its incentive structure to prioritize market share and sellout, aligning the organization with a more sustainable, consumer-driven growth strategy. Coty Inc (NYSE:COTY) is seeing a recovery in Brazil, with the market growing and the company regaining share, supported by strength in mass body and skincare. The company is investing in activity-building advertising for key franchises like CoverGirl's Simply Ageless and Lash Blast, and Sally Hansen's InstaDrive, which is driving improved sellout performance. Coty Inc (NYSE:COTY) is planning a comprehensive restructuring program to offset the impact of the Gucci departure, with a 'belts and suspenders' approach combining cost savings and growth initiatives. The company is leveraging travel retail as a strategic channel for brand image and launch visibility, which is currently growing nicely. Coty Inc (NYSE:COTY) is targeting fiscal 2027 EBITDA and free cash flow close to fiscal 2020 levels, with a clear framework to improve sellout and profitability. The company is rolling out successful U.S. interventions to European brands like Rimmel, Max Factor, and Bourgeois, with early positive signs in the UK. Coty Inc (NYSE:COTY)'s sellout has been trailing below the category for the last couple of quarters, leading to lower sell-in and operational problems. The company's fiscal 2027 is characterized as a 'transition year' with expectations of similar trends in Q1, indicating continued challenges ahead. Coty Inc (NYSE:COTY) faces uncertainty in the Middle East and oil price volatility, which could impact profitability, despite some potential upside from lower oil prices. The company is still awaiting a potential tariff refund of about $30 million, which is uncertain and could affect financial results. Coty Inc (NYSE:COTY) has not yet implemented its improvement program in European consumer brands, which are lagging behind the U.S., and the timeline for improvement is uncertain. The promotional environment remains elevated, with competitors taking pricing actions that could pressure margins. Coty Inc (NYSE:COTY) is experiencing a decline in EBITDA, partly due to returns and obsolescence in the consumer beauty business, which will take time to resolve. The strategic review of the consumer beauty business is a complex process with interdependencies, and the deadline of calendar 2026 is a strong aspiration but not guaranteed. The company's innovation has not been incremental enough, failing to create a halo effect on total business, as seen with the Boss Bond & Beyond launch. Coty Inc (NYSE:COTY) faces the risk of losing shelf space if sellout does not improve, despite efforts to maintain stable shelf presence. Q: Can you provide more detail on the internal KPIs you are targeting for the fiscal '27 transition year, and what are the potential sources of upside and risks to your outlook? A: Markus Strobel, Executive Chairman and Interim CEO, stated that the primary internal KPI is driving sell-out and gaining market share, a shift from the organization's traditional sell-in focus. He expects the sell-out gap versus the market to persist in Q1 but aims to improve substantially afterward through stronger innovation and disciplined spending. The pace of this improvement is the main swing factor. On EBITDA, the company has budgeted for $20-30 million in costs related to oil prices between $90-100, which could be a source of upside if prices moderate. Additionally, a potential $30 million tariff refund and ongoing productivity savings offer further upside. Q: Could you elaborate on the performance of the Consumer Beauty business in EMEA excluding the Middle East, and what is the strategy for the smaller European brands? Also, what does the SKU reduction and CapEx spending mean for the U.S. business, specifically CoverGirl, and how are shelf resets shaping up for the fall? A: Markus Strobel explained that the "Color the Future" performance improvement program, which includes a simpler lineup and more powerful innovation, was first implemented in the U.S. for brands like CoverGirl and Sally Hansen, where it has shown great traction and narrowed the gap versus the market. This program is now being rolled out to European brands like Max Factor and Bourgeois, which have not yet seen these interventions. Regarding SKUs, the 20% reduction on shelf is not expected to materially impact sales, as it will free up space for faster-turning items. On shelf resets, the company has managed to maintain stable shelf space overall, seeing some gains and losses, but does not foresee a significant risk. Q: Can you comment on the current promotional environment and the competitive actions you are seeing, particularly in the mass and prestige categories? A: Markus Strobel noted that pricing competition in the prestige category was intense during the key holiday season (October to December) but has since abated. In the consumer business, companies are moving away from broad-based price changes to a more surgical approach, determining which SKUs can support higher prices. He believes this differentiation will help stabilize the pricing and promotional environment in the coming months. Q: Is the end of calendar 2026 a hard deadline for the strategic review of the Consumer Beauty business, or is there flexibility? A: Markus Strobel affirmed that completing the review by calendar '26 is a "very strong aspiration." However, he acknowledged flexibility, stating that if waiting another month would yield a significantly better result, they would do so. The intent is to finish by then, but value creation remains the ultimate priority. Q: What is driving the improvement in the U.S. Consumer Beauty business for CoverGirl and Sally Hansen, and how does the international performance compare? A: Markus Strobel attributed the U.S. improvement to increased investment in brand-building advertising rather than promotions. The company has returned to national television for CoverGirl, focusing on core franchises like Simply Ageless and Lash Blast, and for Sally Hansen, with its InstaDry innovation. This focused spending strategy is driving the improved sell-out gap. Internationally, Brazil has returned to growth, contributing to the skincare performance, while Europe is lagging as the program has not yet been fully implemented there, though early signs from Rimmel in the U.K. are positive. Q: What gives you confidence in the goal of returning the underlying portfolio, excluding Gucci, to growth in fiscal '28, and what are the key building blocks to achieve this? A: Markus Strobel highlighted two critical points: a focus on big brand franchises like Burberry and Hugo Boss, which have no excuse not to grow, and creating more incremental innovation that generates a halo effect on the total business. He cited the launch of Boss The Scent for Her as an example of creating incremental female business that also boosts the male line. The strategy involves concentrating investments in markets where the company has a right to win and ensuring innovation is constructed for incrementality and overall brand halo. Q: Regarding the plan to mitigate the impact of the Gucci departure in fiscal '28, how much of the planning is dependent on portfolio growth versus restructuring costs? A: Markus Strobel described a "belts and suspenders" approach. The plan involves growing existing brands and launching new ones like Swarovski, but the intention is for the cost savings and restructuring program alone to be sufficient to cover the gap. This ensures that even if growth initiatives underperform, the financial impact is mitigated. More details on the restructuring program will be shared in the coming months. Q: Can you provide an update on the strategic review of Consumer Beauty, and is a cleaner exit for the Brazil business more likely than the U.S. business? A: Markus Strobel reiterated that while the Brazil business might be easier to isolate, the company is not necessarily looking for the easiest path but the best solution that creates the most value. The review is being conducted on the total consumer business, including all its parts. Q: With the Gucci exit, what specific actions will be taken to minimize overhead challenges, given that some costs may not transfer to L'Oreal? A: Markus Strobel expressed satisfaction with the deal with L'Oreal, which achieved objectives of full compensation for a year of profit and cash, debt reduction, and solving inventory questions. For fixed cost savings, the company is planning a serious restructuring program covering its go-to-market setup, manufacturing and distribution network, continuous de-layering of the organization, and right-sizing central functions to reflect the initially lower sales base. Q: How are you ensuring that the new market share KPI in the fiscal '27 incentive structure does not inadvertently encourage chasing volume through promotions, and what guardrails are in place? A: Markus Strobel explained that while market share is a significant KPI, the bonus structure also includes strong sales and EBITDA components. This calibration prevents a sole focus on promotional volume, which would hurt profitability. The goal is to align sell-in with sell-out growth to avoid the wide inventory swings seen in the past. Q: How should we think about the improvement in the Consumer Beauty business through the first half of fiscal '27, and what is the timeline for the SKU reduction? A: Markus Strobel stated that the investment in advertising and the implementation of the improvement program in Europe will proceed regardless of the strategic review outcome, as it For the complete transcript of the earnings call, please refer to the full earnings call transcript.

For the quarter ended June 2026, Coty (COTY) reported revenue of $1.27 billion, up 1.3% over the same period last year. EPS came in at -$0.02, compared to -$0.05 in the year-ago quarter. The reported revenue represents a surprise of +6.42% over the Zacks Consensus Estimate of $1.19 billion. With the consensus EPS estimate being -$0.01, the EPS surprise was -100%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Coty performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Geographic Revenues- Americas: $554.7 million compared to the $534.66 million average estimate based on two analysts. The reported number represents a change of +8.5% year over year. Geographic Revenues- Asia Pacific: $185.6 million compared to the $171.51 million average estimate based on two analysts. The reported number represents a change of +11.1% year over year. Geographic Revenues- EMEA: $528.9 million compared to the $542.89 million average estimate based on two analysts. The reported number represents a change of -7.9% year over year. Net Revenues- Prestige: $771.8 million compared to the $733.89 million average estimate based on four analysts. The reported number represents a change of +1.5% year over year. Net Revenues- Consumer Beauty: $497.4 million versus the four-analyst average estimate of $459.7 million. The reported number represents a year-over-year change of +1.1%. Adjusted Operating Income- Prestige: $60.2 million compared to the $58.31 million average estimate based on two analysts. Adjusted Operating Income- Consumer Beauty: $-20.7 million compared to the $-14.76 million average estimate based on two analysts. View all Key Company Metrics for Coty here>>> Shares of Coty have returned -0.4% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Coty (COTY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Despite losing its crown jewel Gucci Beauty license, Coty ended the fiscal year on a positive note, topping Wall Street revenue estimates. Coty’s net revenue rose 1 percent to $1.26 billion in the three months ended June 30. Analysts had forecast $1.19 billion. More from WWD Nike, Target, Amer Sports + More Companies Have Gotten Tariff Refunds - Will Shoppers See Them Too? The Estée Lauder Cos. Reports 6 Percent Sales Increase in Q4 Salomon Sees North American Growth as Arc'teryx Partners With Dick's Sporting Goods Within that, prestige net revenues rose 1 percent to $771.8 million, representing 61 percent of the company’s total sales. Consumer beauty net revenues also increased 1 percent to $497.4 million. Nevertheless, the group reported a net loss of $144.3 million, compared to a net loss of $72.1 million in the prior year. Adjusted losses per share narrowed to 2 cents, but were greater than Wall Street forecasts for a 1-cent loss. Markus Strobel, executive chairman and interim chief executive officer, said: “We were pleased to return to reported sales growth, with Q4 sales up 1 percent year-over-year and a significant sequential improvement in our like-for-like trends to down 1 percent, despite incurring an estimated 1 percent headwind to sales from the Middle East conflict. It’s encouraging to see closer alignment between our sell-in and sell-out. However, we are not content with our sell-out performance, which remains below market levels in both divisions, and steadily closing that gap remains a clear priority across the organization.” While the company did not provide full-year guidance for 2027, he alluded to the future post-Gucci. In July, it was revealed that Gucci and L’Oréal had entered into a 50-year exclusive beauty license, one year ahead of schedule, as the Italian brand’s fragrance and beauty license was meant to expire with Coty Inc. on June 30, 2028. “While the Gucci Beauty license exit will result in a step-down in sales and profit in FY28, we are developing plans to help moderate the impact,” Strobel continued. “These plans include accelerating our core brands; maximizing the contribution from new portfolio additions, including makeup under Marc Jacobs Beauty and fragrances under Swarovski, Etro, and Marni; and lowering our cost structure through a significant fixed cost reduction program. These actions are designed to mitigate the FY28 impact and position Coty to accelerate growth across our core portfolio and drive profit expansion in FY29 and beyond,” Strobel said. The earnings came as Coty tapped Soraya Benchikh as chief financial officer, effective Sept. 1, succeeding longtime CFO Laurent Mercier. The appointment follows the new operating structure Coty put in place on July 2, which brought commercial decision-making closer to the markets the company serves and combined research and development and supply chain into a single function. Strobel said: “Soraya is a seasoned global executive with a strong track record of financial and operational leadership, and she is the right leader for Coty’s next phase. As we welcome her to Coty, I would like to sincerely thank Laurent for his leadership in strengthening Coty’s financial foundation over the past five years. He shaped a better finance organization, built greater financial discipline, and created a clear financial roadmap.” Benchikh most recently served as CFO of British American Tobacco, after spending nearly four years at Diageo. Benchikh said: “Coty has one of the strongest portfolios in global beauty, and Laurent leaves the finance function in great shape. I’m joining at a pivotal moment in Coty’s transformation, with a clear strategy and a real opportunity to accelerate it alongside Markus and the team. My focus will be strengthening the balance sheet, sharpening capital allocation, and helping drive the next phase of sustained value creation.” Best of WWD Best Timeless Beauty From Oscars Red Carpets Over the Years Best Oscars Red Lips Through the Years Which Celebrity Brands Are Next for a Major Deal? Lady Gaga, Beyonce and More Possible Contenders for the Next Corporate Prize Sign up for WWD's Newsletter. For the latest news, follow us on Facebook, Twitter, and Instagram.