Financial Performance - Q2 2026 reported net revenue was $1,678.6 million, a 1% increase year-over-year, but a 3% decline on a like-for-like (LFL) basis[6] - Prestige net revenue was $1,133.6 million, accounting for 68% of total sales, with a 2% increase reported but a 2% decline on an LFL basis[6] - Consumer Beauty net revenue decreased to $545.0 million, representing 32% of total sales, with a 2% decline reported and a 6% decline on an LFL basis[6] - Reported operating income was $148.2 million, down 45% year-over-year, resulting in an operating margin of 8.8%[6] - The company reported a net loss of $126.9 million for Q2 2026, compared to a net income of $20.4 million in the prior year, leading to a net loss margin of 7.6%[6] - Adjusted EBITDA for Q2 2026 was $330.2 million, a 15% decrease year-over-year, with an adjusted EBITDA margin of 19.7%[6] - Fiscal year-to-date reported loss per share of $0.07, deteriorating from reported EPS of $0.11 in the prior year[19] - 2Q26 adjusted operating income of $274.3 million, down 18% from $333.7 million in the prior year, with an adjusted operating margin of 16.3%[24] - 2Q26 adjusted EBITDA of $330.2 million decreased 15% from $390.7 million in the prior year, with an adjusted EBITDA margin of 19.7%[24] - 2Q26 adjusted net income of $119.7 million increased from $98.8 million in the prior year, with an adjusted net income margin of 7.1%[24] Debt and Financial Position - Total debt at quarter-end was $3,038.1 million, with financial net debt at $2,601.4 million, resulting in a financial leverage ratio of 2.7x[7] - Coty sold its remaining 25.8% stake in Wella for $750 million, using most proceeds to pay down long-term debt[12] - The company reported a diluted EPS of $(0.14) for the three months ended December 31, 2025, compared to $0.02 in the same period of 2024[59] - Coty Inc.'s total debt as of December 31, 2025, was $3,038.1 million, with financial net debt amounting to $2,601.4 million after accounting for cash and cash equivalents of $436.7 million[82] - Long-term debt decreased to $2,986.8 million as of December 31, 2025, from $3,955.5 million as of June 30, 2025[91] Revenue by Region - Americas net revenue of $624.5 million in 2Q26, representing 37% of total sales, decreased 2% on a reported basis[29] - EMEA net revenue of $864.2 million in 2Q26 increased 3% on a reported basis, including a 7% FX benefit[31] - Asia Pacific net revenue of $189.9 million in 2Q26 decreased 1% on a reported basis, with a 1% FX benefit[32] - The Americas region reported net revenues of $624.5 million for the three months ended December 31, 2025, a decrease of 2% from $638.6 million in the same period of 2024[57] - EMEA region net revenues increased by 3% to $864.2 million for the three months ended December 31, 2025, compared to $839.8 million in the same period of 2024[57] Strategic Initiatives - The company is initiating the "Coty. Curated." strategic framework to improve performance and focus on core businesses[4] - The company is focusing on strategic planning and operational efficiency to enhance revenue growth and manage inflationary pressures[35] - Future operations will include a strategic review of the consumer beauty business, particularly in mass color cosmetics and local Brazilian brands[35] - The company anticipates ongoing cost efficiency initiatives and restructuring programs to improve profitability[36] - The company plans to implement new product launches and marketing strategies to respond to changing consumer preferences[36] - Adjusted Performance Measures will be used to evaluate performance and guide strategic decisions, including budgeting and senior management compensation[42] Operational Challenges - The company is addressing supply chain challenges and disruptions to ensure effective production and inventory management[37] - There is a focus on sustainability initiatives and compliance with evolving regulatory measures impacting the beauty industry[37] - The company is assessing the impact of geopolitical risks, including the war in Ukraine and conflicts in the Middle East, on its business operations[37] Cash Flow and Liquidity - 2Q26 cash from operations totaled $559.7 million, compared to $464.5 million during the same period in the prior year[24] - Net cash provided by operating activities for the six months ended December 31, 2025, was $624.9 million, an increase from $531.9 million in 2024[81] - Free cash flow for the three months ended December 31, 2025, was $513.1 million, compared to $419.0 million in the same period of 2024[81] - Future cash flows and liquidity management will be prioritized, including potential refinancing and debt deleveraging activities[36] Adjusted Performance Metrics - The company has excluded various costs from its adjusted performance measures, including restructuring costs and acquisition-related expenses, to provide a clearer view of its core operating performance[46] - The adjusted diluted EPS for the three months ended December 31, 2025, was $0.14, up from $0.11 in the same period of 2024[78] - Adjusted EBITDA for the twelve months ended December 31, 2025, was $957.2 million, reflecting the company's operational performance over the trailing twelve months[83] - The company reported a significant increase in adjustments to reported operating loss, totaling $662.1 million for the twelve months ended December 31, 2025[83] - Coty Inc. had an adjusted operating income of $730.4 million for the twelve months ended December 31, 2025, indicating strong operational efficiency[83]

NEW YORK--(BUSINESS WIRE)--Regulatory News: Coty Inc. (NYSE: COTY) (Paris: COTY) ("Coty" or "the Company") today announced its results for the second quarter of fiscal year 2026, ended December 31, 2025. Coty delivered Q2 results broadly in line with expectations, while significantly reducing its net debt and leverage to the lowest level in close to a decade. "I'm truly excited and energized to join Coty at this pivotal moment," said Markus Strobel, Executive Chairman and Interim Chief Executiv. ...

Key Takeaways Coty is working with OpenAI to deploy secure, governed AI that supports productivity and decision-making.COTY is pairing AI rollout with global employee upskilling and clear guardrails for responsible use.Coty's e-commerce exceeded $1B in net revenues, with 1Q26 sell-out rising 5-6%.Coty Inc. (COTY) partnered with OpenAI to explore and implement responsible artificial intelligence solutions across certain areas of its global operations.Through the introduction of ChatGPT Enterprise, Coty’s wor ...

Core Insights - The Consumer Staples sector is currently underperforming, ranking among the bottom 32% of Zacks classified sectors, with earnings expected to decline in the upcoming reports [2][3]. Industry Overview - U.S. consumer stocks are facing challenges such as weakening consumer confidence, persistent inflation, and pressure on discretionary spending, which are squeezing margins and making earnings growth difficult [3]. - Global demand uncertainty, inflationary pressures, weather volatility, and geopolitical concerns are further constraining margins and limiting near-term earnings growth [3]. Earnings Performance - As of now, 26.7% of Consumer Staples companies have reported earnings, with a year-over-year earnings decline of 3.7% and a revenue drop of 1.1% [5]. - For the December quarter, earnings are expected to decline by 2.4% year-over-year, while revenues are projected to rise by 2.4% [6]. Company-Specific Insights - **Estee Lauder Companies Inc. (EL)**: Expected to report revenue of $4.22 billion, a 5.3% increase year-over-year, with earnings estimated at 83 cents per share, reflecting a 33.9% growth [8]. The company is benefiting from its Profit Recovery and Growth Plan [9]. - **Hershey Company (HSY)**: Anticipated to report revenues of $3 billion, a 4% increase, but earnings are expected to decline by nearly 48% to $1.40 per share [10][11]. Continued demand in its core portfolio is expected to support results despite margin pressures [11]. - **Newell Brands Inc. (NWL)**: Expected to see a revenue decline to $1.89 billion, a 3.3% drop, while earnings are projected to grow by 12.5% to 18 cents per share [12]. The company is facing challenges from inflation and geopolitical volatility [12]. - **Coty Inc. (COTY)**: Projected to report revenues of $1.66 billion, a slight decline of 0.3%, with earnings expected to increase by 63.6% to 18 cents per share [13]. The company is experiencing revenue constraints due to a highly promotional market and tariff pressures [13]. - **Philip Morris International Inc. (PM)**: Expected to report revenues of $10.4 billion, a 7.3% increase, with earnings stable at $1.67 per share, reflecting a 7.7% growth [14]. The company is benefiting from strong pricing power and a growing smoke-free product portfolio [14].

Key Takeaways Coty Q2 revenues are estimated at $1.66 billion, down 0.3% year over year.EPS are projected at 18 cents, up 63.6% from the prior-year quarter.Coty's fragrance strength, U.S. execution gains and cost savings are supporting performance amid pressures.Coty Inc. (COTY) is likely to register a decline in the top line when it reports second-quarter fiscal 2026 earnings on Feb. 5. The Zacks Consensus Estimate for revenues is pegged at $1.66 billion, indicating a decrease of 0.3% from the prior-year r ...

在过去的2025年，美妆行业的整体格局经历了深刻的变革和调整，这一洗牌很可能延续至2026年。 行业整体业绩增速明显放缓，市场表现疲软，不少企业甚至出现营收下滑，头部企业之间的位次争夺战愈发激烈。在国际TOP10美妆企业中，半数集团整 体营收回落，即使保持增长者也只是幅度有限。 与此同时，欧莱雅、联合利华在内的多个国际美妆集团纷纷优化产品组合，剥离低效业务，"卖子"的消息时常传出，过去一年中超50个美妆品牌被舍弃。 更值得关注的是，为降本增效，全球美妆十强中更有六家相继裁员。 在此背景下，寻找发展最优解的这一重担，直接落在了各集团管理层的肩上。2025年，从各业务部门到区域市场，美妆集团们的人事变动异常频繁。而关 乎企业命运的战略制定决策权，则更多地集中各集团CEO的手中。 据聚美丽不完全统计，2025年，仅全球头部美妆集团的高管变动就发生了超30起，其中八大美妆巨头均经历了集团"一把手"的更迭。 2025，换帅潮席卷美妆巨头！ 在面对行业变局与区域挑战，国际美妆集团不约而同地选择通过换帅进行应对，由此掀起了一波密集的"换帅潮"。据聚美丽观察发现，这些企业的CEO变 动存在以下共性： 1.各集团内部提升的CE ...

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal! AI is eating the world—and the machines behind it are ravenous. Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink. Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and b ...

Core Viewpoint - The market anticipates Coty (COTY) to report a year-over-year increase in earnings despite lower revenues for the quarter ended December 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Coty is expected to post quarterly earnings of $0.18 per share, reflecting a year-over-year increase of +63.6%, while revenues are projected to be $1.66 billion, a decrease of 0.3% from the previous year [3]. - The consensus EPS estimate has been revised 2.72% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Coty is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.87%, suggesting a bearish outlook from analysts [12]. - Coty currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [12]. Historical Performance - In the last reported quarter, Coty was expected to earn $0.15 per share but only achieved $0.12, resulting in a surprise of -20.00% [13]. - The company has not surpassed consensus EPS estimates in any of the last four quarters [14]. Industry Comparison - e.l.f. Beauty (ELF), another player in the cosmetics industry, is expected to report earnings of $0.72 per share, indicating a year-over-year change of -2.7%, with revenues projected at $459.86 million, up 29.4% from the previous year [18]. - The consensus EPS estimate for e.l.f. Beauty has been revised down by 2.3% over the last 30 days, resulting in an Earnings ESP of -1.81% [19].

Coty Inc. (NYSE:COTY) is among the overlooked penny stocks to invest in. On January 21, TD Cowen cut the price target on Coty Inc. (NYSE:COTY) to $3.40 from $3.50, and maintained a Hold rating, according to TheFly. This revision, suggesting upside potential of nearly 4%, was part of the firm’s Q4 preview, during which it adjusted estimates and targets for its beauty market coverage. According to the firm, strong beauty dynamics will fuel revenue upside across all the companies. Since the start of 2026, s ...

Core Insights - Coty Inc. is focusing on its innovation pipeline to drive organic revenue growth amid macroeconomic pressures affecting discretionary beauty spending [1][7] - The company is emphasizing fragrances and selective expansion into high-margin categories to improve sales trends [1] Innovation Strategy - A key component of Coty's strategy is the global launch of BOSS Bottled Beyond, which is performing well in Europe and Australia and aims to enhance brand penetration in the U.S. [2] - Coty is also increasing its presence in the fragrance mists category, which is growing rapidly and contributing positively to margins, with successful launches from Calvin Klein, Kylie Cosmetics, and adidas [2] Premium Segment Growth - The ultra-premium fragrance segment saw a 17% growth in the first quarter, indicating strong demand for higher-end products [3] - Upcoming launches include ultra-premium fragrances under the Etro brand and Marc Jacobs Beauty makeup, along with new licenses like Swarovski and Marni [3] Sales Momentum - Management anticipates that the concentration of product launches in the second half of fiscal 2026 will be crucial for restoring positive sales momentum [4] - Current revenue pressures are attributed to trade inventory adjustments, but the innovation pipeline is expected to support a return to positive like-for-like sales growth [4] Stock Performance - Coty's shares have decreased by 2.8% over the past month, underperforming the Consumer Staples sector, which grew by 2.4%, and the S&P 500 index, which rose by 1.3% [5] - The stock is trading at a forward P/E ratio of 6.69, significantly lower than the industry average of 30.32 and the sector average of 16.81, indicating a modest discount compared to peers [9]