Coty (NYSE:COTY) Posts Earnings Results

Coty (NYSE:COTY) announced its earnings results on Tuesday. The company reported ($0.03) earnings per share for the quarter, FiscalAI reports. Coty had a negative net margin of 9.20% and a positive return on equity of 4.45%. The business had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.27 billion. During the same quarter last year, the business posted $0.01 earnings per share. The business’s quarterly revenue was down 1.3% compared to the same quarter last year. Coty updated its FY 2026 guidance to 0.330-0.350 EPS.

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

• Like-for-like sales declined 7% in Q3 (an estimated 1.4% hit from the Middle East); excluding that impact results were in line with prior guidance but the Middle East is expected to remain a near-term headwind, particularly for prestige.
• Consumer Beauty is under significant pressure—sell-out was down ~3% and like‑for‑like sales down ~10%—and the company took a $363 million impairment on the division driven by lower revenue forecasts and a higher WACC.
• Operationally Coty beat Q3 adjusted EBITDA and EPS guidance, generated $276 million of YTD free cash flow, exited Q3 at ~3.4x leverage and reiterated deleveraging toward a ~2x target, with FY‑2026 adjusted EBITDA guidance of $838M–$848M and EPS $0.33–$0.35.
• The new Coty.Curated strategy and programs (fewer, higher‑impact launches, greater sell‑out focus, stepped‑up consumer advocacy, AI to cut asset costs, and the Color the Future playbook) plus announced cost and productivity actions target improved mix and profitability over FY‑2027.

Coty Trading Down 7.0%

COTY stock traded down $0.19 during midday trading on Thursday, reaching $2.47. The stock had a trading volume of 5,892,440 shares, compared to its average volume of 8,475,353. The company has a quick ratio of 0.52, a current ratio of 0.79 and a debt-to-equity ratio of 0.81. Coty has a twelve month low of $1.95 and a twelve month high of $5.34. The firm has a market cap of $2.17 billion, a price-to-earnings ratio of -3.98, a PEG ratio of 0.50 and a beta of 1.06. The business has a fifty day simple moving average of $2.28 and a two-hundred day simple moving average of $2.93.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on COTY. Weiss Ratings lowered Coty from a “sell (d)” rating to a “sell (d-)” rating in a research note on Wednesday, April 29th. Morgan Stanley set a $2.50 target price on Coty in a research note on Thursday. Canaccord Genuity Group set a $2.50 target price on Coty in a research note on Monday, February 9th. The Goldman Sachs Group restated a “neutral” rating and issued a $2.50 target price on shares of Coty in a research note on Monday, February 9th. Finally, Royal Bank Of Canada reiterated an “outperform” rating and issued a $8.00 price objective on shares of Coty in a research report on Monday. One equities research analyst has rated the stock with a Buy rating, fourteen have assigned a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Reduce” and a consensus price target of $3.84.

Insider Transactions at Coty

In related news, insider Bretten Gordon Von bought 83,000 shares of Coty stock in a transaction on Friday, March 6th. The shares were purchased at an average price of $2.41 per share, for a total transaction of $200,030.00. Following the completion of the acquisition, the insider owned 986,620 shares in the company, valued at approximately $2,377,754.20. This represents a 9.19% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 5.90% of the company’s stock.

Hedge Funds Weigh In On Coty

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Corient Private Wealth LLC bought a new position in Coty during the fourth quarter worth about $39,000. Vise Technologies Inc. bought a new position in Coty during the fourth quarter worth about $39,000. Quarry LP bought a new position in Coty during the fourth quarter worth about $40,000. Campbell & CO Investment Adviser LLC bought a new position in Coty during the fourth quarter worth about $41,000. Finally, Polymer Capital Management US LLC bought a new position in Coty during the fourth quarter worth about $42,000. Institutional investors own 42.36% of the company’s stock.

Key Stories Impacting Coty

Here are the key news stories impacting Coty this week:

• Positive Sentiment: Coty reinstated its annual profit target and raised FY‑2026 EPS guidance to $0.33–$0.35 (above prior consensus), which supports a path to profitability and helps explain some buy‑side interest. Coty reinstates annual profit target (Reuters)
• Positive Sentiment: Management highlighted resilience in fragrances and growth in Asia — pockets of outperformance that investors may view as stabilizing segments amid wider weakness. Coty revenue & segment notes (WSJ)
• Neutral Sentiment: Analysts are largely cautious: Canaccord reiterated a Hold and a $2.50 price target, signaling limited upside in the near term absent clearer operational fixes. Analyst Hold rating (TipRanks)
• Neutral Sentiment: Some broker notes target modest upside (one report cites a $3.90 target), but estimates vary widely — leaving sentiment mixed. Broker price targets (AmericanBankingNews)
• Negative Sentiment: Multiple securities‑fraud class actions and numerous law‑firm shareholder alerts were filed or announced this week, alleging concealed deterioration, a surprise profit decline and executive departures — a near‑term liability and headline risk that pressures the stock. Lawsuit / investor alerts (Hagens Berman)
• Negative Sentiment: Q3 results missed in places: a $0.03 per‑share loss, revenue down (mid‑single digits), widened losses and margin pressure cited from tariffs, weaker demand and Middle East disruptions — fundamentals that justify investor selling. Q3 loss & revenue decline (Zacks)
• Negative Sentiment: Company flagged Middle East conflict as a material drag on sales and consumer demand in the region; macro/regional risk remains a direct revenue headwind. Middle East headwinds coverage (Yahoo/aggregation)

Coty Company Profile

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.