Coty Inc Stock Price, News & Analysis

Coty (NYSE: COTY), a leading global beauty company, hosted a roundtable discussion as part of its #UndefineBeauty campaign to challenge restrictive beauty standards. The initiative, launched in 2023, aims to update outdated dictionary definitions of beauty that use limiting examples like 'she was considered a great beauty in her youth.'

The expert panel included perspectives from various fields including neuroscience, art, social media, and mental health. Notable participants included brain scientist John-Dylan Haynes, journalist Anita Bhagwandas, and Paralympic champion Denise Schindler. The campaign has reached over 350 million people globally and gained support from celebrities including Billy Porter, Priyanka Chopra-Jonas, and Marc Jacobs.

Coty CEO Sue Nabi emphasized the company's commitment to creating inclusive beauty standards and invites the public to sign the #UndefineBeauty petition on change.org to drive change in dictionary definitions.

Coty (NYSE: COTY) provided updates at the CAGNY 2025 Conference, highlighting its strong market position and financial progress. The company has outpaced the beauty market in 9 of the last 14 quarters, with fragrances accounting for over 60% of sales and an even larger portion of profit.

The company has demonstrated significant financial improvements, expanding adjusted gross margins by over 400 basis points and adjusted EBITDA margins by 130 basis points to 17.8% over the past 4 fiscal years. Notably, Coty achieved a leverage below 3x for the first time in over 8 years exiting CY24.

Looking forward, Coty aims to capture growth opportunities across price points ($5 to $500) in fragrances, while leveraging its multi-category expertise in cosmetics, bodycare, and skincare. The company targets continued margin expansion, double-digit adjusted EPS growth, and plans to reduce leverage to approximately 2x by the end of CY26.

Coty (NYSE:COTY) has announced the filing of its Form 10-Q quarterly report with the Securities and Exchange Commission (SEC) on February 10, 2025. The report covers the fiscal quarter that ended on December 31, 2024. The quarterly report can be accessed through the SEC's website.

Coty Inc. (NYSE: COTY) reported mixed financial results for 1H25 and Q2 FY2025. The company saw a 1% decrease in reported net revenue for 1H25, with a 2% LFL growth. Q2 showed a 3% decline in reported revenue and 1% LFL decline.

Key highlights include strong margin expansion, with adjusted gross margin reaching 66.8% in Q2 (up 170 basis points). The company achieved its lowest leverage in over 8 years, dropping below 3x. Operating income grew 13% to $268.2 million in Q2, while adjusted EBITDA increased 7% to $390.7 million.

Challenges included headwinds in the APAC region, particularly China and Travel Retail Asia, along with pressure in mass cosmetics. However, the fragrance category remained robust with high single-digit growth. The company announced a new beauty license agreement with Swarovski, with first launches expected in 2026.

Coty and Swarovski have announced a long-term beauty license agreement to develop, produce, and distribute fragrances. The partnership combines Coty's beauty expertise with Swarovski's crystal craftsmanship, aiming to create innovative beauty products. Swarovski, with its presence in over 140 countries through 2,300 boutiques, will leverage this partnership to enhance its brand presence in the beauty market while bringing its pop luxury essence to the industry.

The collaboration aligns with Coty's strategy of focusing on licenses with multi-category potential and will target key markets in EMEA, the Americas, and Asia. The first products under this licensing agreement are expected to launch in 2026.

Coty announced the early results of its cash tender offer for its 5.000% Senior Secured Notes due 2026. The company increased the tender offer from $250 million to $300 million, which was fully subscribed. As of November 20, 2024, $476,131,000 in principal amount was tendered, exceeding the Notes Cap. Due to oversubscription, Coty will accept notes on a prorated basis with an approximate proration factor of 63%. The Total Consideration is $1,000.00 per $1,000 principal amount, including a $30.00 early tender premium. The tender offer expires on December 6, 2024, with final settlement expected on December 10, 2024.

Coty Inc. (NYSE: COTY) has announced a cash tender offer to purchase up to $250 million of its outstanding 5.000% Senior Secured Notes due 2026. The tender offer includes a total consideration of $1,000 per $1,000 principal amount for notes tendered by the Early Tender Date of November 20, 2024. Additionally, Coty announced the full redemption of its €180.3 million 4.750% Senior Notes due 2026, scheduled for December 6, 2024. These actions align with Coty's deleveraging strategy to reduce total outstanding public debt.

Coty reported solid Q1 FY25 results with 2% reported revenue growth and 4.5% LFL growth. The company's performance was driven by strong growth in fragrances across all price points. Prestige segment revenues increased 5% reported and 7% LFL, while Consumer Beauty declined 3% reported with flat LFL growth. Gross margin expanded by 200 basis points to 65.5%. Reported operating income grew 20% to $237.8 million, while adjusted EBITDA remained flat at $360.1 million. The company maintained its FY25 outlook with expected LFL sales growth of 3-4% in H1.

Coty has released its FY24 Sustainability Report, highlighting significant environmental achievements and new commitments. The company has exceeded its 2030 Scope 1 and 2 emissions targets, achieving an 82% reduction since 2019, alongside a 65% reduction in air freight emissions. Key milestones include powering all owned facilities with 100% renewable electricity, recycling 85% of factory waste, and achieving gender balance in leadership ahead of schedule.

The company has set new ambitious targets, including reducing virgin plastic use by 60% by 2030, cutting water withdrawal by 25%, and ensuring 90% certification of fiber-based materials. Coty has also rejoined the Ellen MacArthur Foundation as a Network Member and launched sustainable packaging initiatives for key products.