Coty (NYSE:COTY) Posts Quarterly Earnings Results, Misses Expectations By $0.04 EPS

Coty (NYSE:COTY) released its quarterly earnings results on Thursday. The company reported $0.14 EPS for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.04), FiscalAI reports. The business had revenue of $1.68 billion for the quarter, compared to the consensus estimate of $1.66 billion. Coty had a positive return on equity of 4.74% and a negative net margin of 6.60%.The firm’s revenue was up .5% on a year-over-year basis. During the same quarter last year, the company earned $0.11 earnings per share.

Here are the key takeaways from Coty’s conference call:

• New leadership and “Coty Curated” strategy — Markus Strobel (36 days in) is refocusing the company on fewer brands/markets, disciplined investment, and scaling winners to improve operational execution over time.
• Guidance withdrawn and weak near-term outlook — Coty pulled full FY guidance and expects Q3 like‑for‑like sales to decline mid‑single digits with EBITDA of $100–$110M vs $204M a year ago, signaling material near‑term profit pressure.
• Balance sheet and cash generation strength — H1 free cash flow was $524M, Coty closed the Wella divestiture for $750M upfront, and net debt fell to $2.6B (2.7x leverage), giving the company more financial flexibility.
• Margin headwinds persist — Adjusted gross margin dropped ~260 bps in Q2 and management expects another 200–300 bps headwind from promotions, tariffs, mix and lower volumes into the second half.
• Consumer beauty turnaround and portfolio pruning underway — The “Color the Future” plan, SKU rationalization, reallocated A&CP, AI content initiatives, ending the Aveda license, and halting small lifestyle projects aim to restore share and profits but improvements are expected to take time.

Coty Stock Performance

Shares of NYSE COTY traded down $0.54 during mid-day trading on Friday, hitting $2.62. The company had a trading volume of 19,126,154 shares, compared to its average volume of 8,004,976. The stock’s 50-day moving average price is $3.21 and its 200-day moving average price is $3.85. The company has a market capitalization of $2.29 billion, a price-to-earnings ratio of -5.68, a P/E/G ratio of 0.24 and a beta of 0.95. Coty has a 1 year low of $2.44 and a 1 year high of $7.10. The company has a current ratio of 0.85, a quick ratio of 0.54 and a debt-to-equity ratio of 1.05.

Institutional Investors Weigh In On Coty

A number of hedge funds have recently made changes to their positions in COTY. Royal Bank of Canada boosted its stake in shares of Coty by 8.2% during the 1st quarter. Royal Bank of Canada now owns 128,451 shares of the company’s stock worth $702,000 after acquiring an additional 9,700 shares during the last quarter. United Services Automobile Association bought a new position in Coty during the first quarter valued at approximately $131,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of Coty by 7.1% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,298,221 shares of the company’s stock valued at $7,101,000 after acquiring an additional 86,534 shares during the last quarter. Focus Partners Wealth purchased a new position in shares of Coty in the 1st quarter worth $73,000. Finally, Prudential Financial Inc. increased its stake in Coty by 17.1% during the second quarter. Prudential Financial Inc. now owns 39,844 shares of the company’s stock worth $185,000 after acquiring an additional 5,810 shares during the last quarter. 42.36% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

COTY has been the subject of a number of research reports. Canaccord Genuity Group set a $3.50 price objective on Coty in a report on Monday. TD Cowen decreased their price target on shares of Coty from $3.50 to $3.40 and set a “hold” rating on the stock in a research note on Wednesday, January 21st. Santander downgraded shares of Coty to a “neutral” rating in a research note on Tuesday, December 23rd. Citigroup lowered their price target on shares of Coty from $4.25 to $3.50 and set a “neutral” rating for the company in a report on Wednesday, December 17th. Finally, Evercore ISI lowered shares of Coty from a “strong-buy” rating to a “hold” rating in a report on Tuesday, December 23rd. Two research analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat, Coty has a consensus rating of “Reduce” and a consensus target price of $4.89.

Coty News Roundup

Here are the key news stories impacting Coty this week:

• Positive Sentiment: Management says it has reduced debt and is continuing a strategic review, which could strengthen the balance sheet and free up options for portfolio simplification. Coty continues strategic review following successful debt reduction
• Positive Sentiment: Broker support: Royal Bank of Canada reiterated an “Outperform” rating, signaling some analyst confidence in the recovery thesis. Royal Bank Of Canada Reiterates “Outperform” Rating for Coty (NYSE:COTY)
• Positive Sentiment: Coty announced a partnership with OpenAI to scale AI tools across its organization, which may improve marketing, supply chain or cost efficiency over time. Coty partners with OpenAI
• Neutral Sentiment: Q2 results were mixed: revenue of $1.68B topped estimates but EPS of $0.14 missed consensus ($0.18); revenue was roughly flat year‑over‑year, showing stability but not robust growth. Coty Q2 Earnings Miss Estimates Amid Margin Pressure, Revenues Beat
• Neutral Sentiment: The company filed its Form 10‑Q for the quarter (available on the SEC site), providing detailed disclosure for investors to parse the drivers of the miss and cash position. Coty Announces Filing of Quarterly Report on Form 10-Q for the Fiscal Quarter Ended December 31, 2025
• Negative Sentiment: Coty withdrew its full‑year fiscal 2026 guidance and said it will shift focus to core brands under interim CEO Markus Strobel — a sign management sees greater uncertainty and is resetting expectations. Coty shifts focus to core brands under new CEO, withdraws full-year outlook
• Negative Sentiment: Margins are under pressure from promotions, tariffs and softer Consumer Beauty demand; management warned of lingering promotional pressure and margin compression. Coty tells investors to brace for lingering promotional pressures, margin compression
• Negative Sentiment: The company swung to a quarterly loss and investors reacted sharply — headlines note a ~14% intraday drop after results/guidance actions, reflecting near‑term investor skepticism. Coty Swings to Second-Quarter Loss, Withdraws Fiscal-Year Guidance
• Negative Sentiment: Operational choppiness: reports note a Q2 sales decline in some segments and termination of at least one license, underscoring portfolio rationalization risks. Coty Sales Decline 3% in Q2

About Coty

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.