Coty Reports $72M Q4 Loss, Shares Drop Over 17%

Coty reported a surprise net loss of $72.1 million for its fiscal fourth quarter, with adjusted EPS of negative $0.05, missing analyst estimates and reflecting challenges in U.S. demand and the mass cosmetics market. Despite an 8% year-over-year revenue decline to $1.25 billion, the company exceeded revenue forecasts but faced significant margin pressures, especially in its Consumer Beauty segment. CEO Sue Nabi highlighted cautious retailer ordering amid macroeconomic uncertainty and tariff concerns, leading to expected like-for-like sales declines of 6% to 8% in the first quarter of fiscal 2026 and 3% to 5% in the second quarter, with a return to growth anticipated in the second half of the fiscal year. Coty is focusing on innovation, supply chain optimization, and sharpening its strategy around core strengths and attractive categories, while also planning job cuts and navigating a promotional competitive environment. The stock dropped significantly following the earnings announcement, reflecting investor concerns about ongoing challenges and a reset in Coty's operational plans. Discussions around potential buyers have surfaced, though no definitive deal has been reached.