Coty Inc. (NYSE:COTY) Earnings Preview: Challenges Ahead

Coty Inc. (NYSE:COTY) is a global beauty company known for its wide range of cosmetics, skincare, and fragrance products. The company operates in a competitive market with major players like L'Oréal and Estée Lauder. Despite the competition, Coty has carved out a niche, particularly in the premium fragrance segment.

On August 20, 2025, Coty reported an earnings per share (EPS) of -$0.05, missing the estimated EPS of $0.01. This marks a decline from the previous year's loss of $0.03 per share, as highlighted by Zacks. Despite this, Coty exceeded revenue expectations, reporting $1.25 billion compared to the estimated $1.21 billion.

The company's revenue growth is driven by strong demand for premium fragrances in Europe and other international markets. This indicates Coty's ability to capitalize on the growing global interest in high-end fragrances, a positive aspect of its financial performance.

Coty's financial metrics reveal challenges. The negative price-to-earnings (P/E) ratio of -10.70 and an earnings yield of -9.34% indicate current unprofitability. The price-to-sales ratio of 0.71 suggests investors pay 71 cents for every dollar of sales, while the enterprise value to sales ratio of 1.35 reflects the company's total valuation relative to sales.

The debt-to-equity ratio of 1.12 shows Coty relies significantly on debt compared to equity. The current ratio of 0.82 suggests potential challenges in covering short-term liabilities with short-term assets. Despite these challenges, Coty's revenue performance highlights its resilience in a competitive market.

• The average price target for Coty Inc. (NYSE:COTY) has seen a notable shift over the past year, indicating changing analyst expectations.
• Recent earnings reports have fallen short of expectations, with a profit of $0.11 per share missing the Zacks Consensus Estimate of $0.22 per share.
• Despite a decrease in the average price target from $10.44 a year ago to $5.00 last month, analyst Christopher Carey from Wells Fargo has set a more optimistic price target of $11, highlighting the potential impact of international revenue trends.

Coty Inc. (NYSE:COTY) is a global beauty company known for its wide range of cosmetics, skincare, and fragrance products. The company operates in a competitive industry with major players like L'Oréal and Estée Lauder. Over the past year, Coty has experienced a notable shift in its consensus price target, reflecting changing analyst expectations.

Last month, the average price target for Coty was $5.00, indicating a cautious short-term outlook from analysts. This sentiment aligns with Coty's recent earnings report, which fell short of expectations. The company reported a profit of $0.11 per share, missing the Zacks Consensus Estimate of $0.22 per share, as highlighted by Zacks.

Three months ago, the average price target was slightly higher at $5.83, suggesting more optimism at that time. However, Coty's second-quarter earnings report revealed a decline in earnings per share compared to the previous year, from $0.25 to $0.11. This decline may have contributed to the more conservative outlook from analysts.

A year ago, the average price target was significantly higher at $10.44. The substantial decrease over the year suggests analysts have become more conservative in their expectations for Coty's stock performance. This shift may be influenced by Coty's revised annual profit forecast, which was lowered after missing second-quarter revenue estimates, as reported by Reuters.

Analyst Christopher Carey from Wells Fargo has set a price target of $11 for Coty, reflecting the potential impact of international revenue trends on the stock's future performance. As Coty navigates these developments, investors are closely watching how the company's international operations will shape its prospects.

• The average price target for Coty Inc. (NYSE:COTY) has seen a notable shift over the past year, indicating changing analyst expectations.
• Recent earnings reports have fallen short of expectations, with a profit of $0.11 per share missing the Zacks Consensus Estimate of $0.22 per share.
• Despite a decrease in the average price target from $10.44 a year ago to $5.00 last month, analyst Christopher Carey from Wells Fargo has set a more optimistic price target of $11, highlighting the potential impact of international revenue trends.

Coty Inc. (NYSE:COTY) is a global beauty company known for its wide range of cosmetics, skincare, and fragrance products. The company operates in a competitive industry with major players like L'Oréal and Estée Lauder. Over the past year, Coty has experienced a notable shift in its consensus price target, reflecting changing analyst expectations.

Last month, the average price target for Coty was $5.00, indicating a cautious short-term outlook from analysts. This sentiment aligns with Coty's recent earnings report, which fell short of expectations. The company reported a profit of $0.11 per share, missing the Zacks Consensus Estimate of $0.22 per share, as highlighted by Zacks.

Three months ago, the average price target was slightly higher at $5.83, suggesting more optimism at that time. However, Coty's second-quarter earnings report revealed a decline in earnings per share compared to the previous year, from $0.25 to $0.11. This decline may have contributed to the more conservative outlook from analysts.

A year ago, the average price target was significantly higher at $10.44. The substantial decrease over the year suggests analysts have become more conservative in their expectations for Coty's stock performance. This shift may be influenced by Coty's revised annual profit forecast, which was lowered after missing second-quarter revenue estimates, as reported by Reuters.

Analyst Christopher Carey from Wells Fargo has set a price target of $11 for Coty, reflecting the potential impact of international revenue trends on the stock's future performance. As Coty navigates these developments, investors are closely watching how the company's international operations will shape its prospects.

Coty Inc. (NYSE:COTY) is a global beauty company known for its wide range of cosmetics, skincare, and fragrance products. Despite its strong market presence, Coty faces stiff competition from industry giants like L'Oreal and Estée Lauder. The company recently reported its financial results for the second quarter of fiscal year 2025, revealing some challenges.

On February 10, 2025, Coty reported earnings per share (EPS) of $0.11, which was significantly below the Zacks Consensus Estimate of $0.22. This represents a 50% negative earnings surprise, highlighting the company's struggle to meet market expectations. Compared to the same quarter last year, when EPS was $0.25, this marks a notable decline. Over the past four quarters, Coty has consistently failed to exceed consensus EPS estimates.

Coty's revenue for the quarter was approximately $1.67 billion, falling short of the estimated $1.72 billion. This 2.65% miss from the Zacks Consensus Estimate also reflects a decrease from the $1.73 billion reported in the same period the previous year. The company has only surpassed consensus revenue estimates once in the last four quarters, indicating ongoing challenges in revenue generation.

The company has revised its annual profit forecast downward, now expecting an adjusted per-share profit between 50 and 52 cents, down from the previous forecast of 54 to 57 cents. This revision comes amid a decline in demand for cosmetics in the U.S. and stricter inventory management by retailers. Similar trends have been observed by competitors like Elf Beauty and L'Oreal, as highlighted by recent reports.

Despite these challenges, Coty achieved significant gross and operating margin expansion in the first half of fiscal year 2025. However, net revenue decreased by 1% year-over-year, influenced by foreign exchange rates and the divestiture of the Lacoste license. The company's like-for-like net revenue grew by 2%, driven by performance in prestige and mass fragrances, as well as mass skincare, although cosmetics and body care saw declines.

Coty Inc. (NYSE:COTY) is a global beauty company known for its wide range of cosmetics, skincare, and fragrance products. Despite its strong market presence, Coty faces stiff competition from industry giants like L'Oreal and Estée Lauder. The company recently reported its financial results for the second quarter of fiscal year 2025, revealing some challenges.

On February 10, 2025, Coty reported earnings per share (EPS) of $0.11, which was significantly below the Zacks Consensus Estimate of $0.22. This represents a 50% negative earnings surprise, highlighting the company's struggle to meet market expectations. Compared to the same quarter last year, when EPS was $0.25, this marks a notable decline. Over the past four quarters, Coty has consistently failed to exceed consensus EPS estimates.

Coty's revenue for the quarter was approximately $1.67 billion, falling short of the estimated $1.72 billion. This 2.65% miss from the Zacks Consensus Estimate also reflects a decrease from the $1.73 billion reported in the same period the previous year. The company has only surpassed consensus revenue estimates once in the last four quarters, indicating ongoing challenges in revenue generation.

The company has revised its annual profit forecast downward, now expecting an adjusted per-share profit between 50 and 52 cents, down from the previous forecast of 54 to 57 cents. This revision comes amid a decline in demand for cosmetics in the U.S. and stricter inventory management by retailers. Similar trends have been observed by competitors like Elf Beauty and L'Oreal, as highlighted by recent reports.

Despite these challenges, Coty achieved significant gross and operating margin expansion in the first half of fiscal year 2025. However, net revenue decreased by 1% year-over-year, influenced by foreign exchange rates and the divestiture of the Lacoste license. The company's like-for-like net revenue grew by 2%, driven by performance in prestige and mass fragrances, as well as mass skincare, although cosmetics and body care saw declines.

• Coty Inc. (NYSE:COTY) faces potential challenges in its Q2 earnings report due to downturns in the Chinese mainland and Asia Travel Retail markets.
• Analysts project a 20% decrease in earnings per share (EPS) and a slight 0.7% decrease in revenue compared to the same period last year.
• Financial metrics such as a price-to-earnings (P/E) ratio of 34.83 and a debt-to-equity ratio of 1.01 will be key in assessing Coty's market valuation and financial health.

Coty Inc. (NYSE:COTY) is a global beauty company known for its wide range of cosmetics, skincare, and fragrance products. The company operates in a competitive market alongside major players like L'Oréal and Estée Lauder. Coty is set to release its quarterly earnings on February 10, 2025, with analysts estimating earnings per share (EPS) of $0.20 and revenue of $1.72 billion.

However, Coty's upcoming Q2 earnings report may reflect challenges due to a downturn in the Chinese mainland and Asia Travel Retail markets. These regions have shown weakness, which could negatively impact Coty's financial performance. Analysts expect a decline in earnings, with projections of $0.20 per share, a 20% decrease from the same period last year.

Revenue is anticipated to reach $1.72 billion, a slight 0.7% decrease from the previous year's quarter. Over the past 30 days, there has been a 0.6% downward revision in the consensus EPS estimate. Such revisions can influence investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price performance.

Coty's financial metrics provide insight into its market valuation. The company has a price-to-earnings (P/E) ratio of 34.83, indicating how the market values its earnings. The price-to-sales ratio is 0.97, showing investor willingness to pay per dollar of sales. The enterprise value to sales ratio is 1.61, reflecting total valuation relative to sales.

Coty's debt-to-equity ratio is 1.01, indicating the proportion of debt used to finance assets relative to equity. The current ratio is 0.85, suggesting its ability to cover short-term liabilities with short-term assets. These metrics, along with the earnings report, will be crucial in assessing Coty's financial health and future prospects.