- Coty reported an adjusted loss per share of 5.0 cents in Q4 2025, compared to a projected earnings per share of 1.4 cents and a previous year’s loss of 3.0 cents per share.
- Net revenue amounted to $1.25 billion, representing an 8.1% year-over-year decline, but exceeding estimates of $1.21 billion.
- Americas net revenue was $511.2 million, down 12% year-over-year, slightly below the projected $515 million.
- EMEA net revenue reached $574.2 million, marking a 4% year-over-year decrease, but surpassing the estimated $569 million.
- APAC net revenue totaled $167 million, down 8.4% year-over-year, yet significantly over the $134.6 million estimate.
- Prestige channel net revenue was $760.6 million, a decrease of 5.3% year-over-year, outperforming the $717.8 million projection.
- Consumer beauty net revenue fell 12% year-over-year to $491.8 million, slightly below the estimated $496 million.
- Gross margin stood at 62.3%, down from 64.2% the previous year, and marginally under the 63.1% estimate.
- Adjusted EBITDA in Q4 was $126.7 million, a 23% year-over-year decline, not meeting the expected $130.8 million.
- Like-for-like sales decreased by 9% in Q4 2025.
- For the first quarter of FY26, Coty forecasts a like-for-like sales decline of 6% to 8%.
- Coty expects gradual improvement in sales trends throughout FY26, following active measures taken in Q4 2025 to stabilize the business baseline.
- Like-for-like sales decline is anticipated to be 6% to 8% in Q1 2026 and 3% to 5% in Q2 2026, with a return to growth in the second half of FY26.
- A low single-digit percentage benefit from foreign exchange is expected on the reported revenue side in the first half of FY26.
- The first half of FY26 will experience gross margin pressure due to lower sales and the net impact from tariffs, with mitigation efforts contributing more in the second half.
- Coty foresees a gradual improvement in profit trends starting from Q4 2025, with Q1 2026 adjusted EBITDA declining at a mid-to-high teens percentage, and Q2 2026 adjusted EBITDA declining at a low-to-mid teens percentage, before returning to growth in the second half of FY26.
- Supported by reduced interest expenses and lower tax rates, adjusted EPS for the first half of FY26 is expected to decline by a high single-digit to mid-teen percentage, ranging from $0.33 to $0.36, with growth in the second half.
A look at Coty Inc Cl A Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 1 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores analysis, the long-term outlook for Coty Inc Cl A appears positive overall. The company scores high in the Value category, indicating a strong valuation compared to its peers. This suggests that investors may find Coty Inc Cl A to be potentially undervalued in the market. However, its Dividend score is low, implying that the company may not be a suitable choice for income-seeking investors looking for consistent dividend payouts.
In terms of Growth, Resilience, and Momentum, Coty Inc Cl A scores moderately. While the company shows potential for growth, it may face some challenges in terms of resilience and momentum in the market. Overall, Coty Inc. is a beauty product manufacturer with a diverse product range, catering to various retail channels globally, which may position it well for long-term success in the industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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