Coty (COTY) Stock News

Coty (NYSE: COTY) reported Q3 FY2025 results showing declining sales amid market challenges. Net revenue declined 6% to $1.3B, with a reported net loss of $409M. The company's Prestige segment declined 4% to $829.4M, while Consumer Beauty dropped 9% to $469.7M. Despite revenue challenges, Coty maintained profitability focus with adjusted EBITDA increasing 2% to $204.2M and margin expanding 130 basis points to 15.7%. The company announced a new phase of its "All-in to Win" program, targeting $370M in cost savings for FY26-27. Management updated FY25 outlook, expecting a 2% LFL sales decline and adjusted EPS of $0.49-0.50. Coty plans multiple initiatives for FY26, including blockbuster launches in both Prestige and Consumer Beauty segments, while focusing on inventory management and operational efficiency.

Coty (NYSE: COTY) has launched the next phase of its 'All-in to Win' transformation program, targeting approximately $130 million in fixed cost savings over the next two years. This initiative aims to simplify operations and boost market agility through streamlined organizational structures and enhanced innovation focus.

The program's key pillars include scaling markets and regions, streamlining support functions, boosting innovation impact, and optimizing administrative spending. The transformation, set to execute through first half of FY27, is expected to impact around 700 positions. Combined with ongoing productivity initiatives, total savings between FY25-FY27 are projected to reach nearly $500 million.

The company's previous transformation efforts from FY21-FY24 generated over $700 million in savings, achieving 400 basis points of gross margin expansion and delivering 13% LFL revenue CAGR.

Coty (NYSE: COTY) has achieved significant upgrades in its ESG ratings from major rating agencies. MSCI has elevated Coty's ESG rating to 'A' from 'BB', recognizing improvements in packaging waste, raw material sourcing, chemical safety, and corporate governance. The company maintained its maximum MSCI Carbon Footprint score.

Sustainalytics has improved Coty's ESG Risk Rating to 18.1 (low risk) from 23.9 (medium risk), positioning the company as a leader among global beauty companies and ranking 3rd out of 104 in Household Products companies. The improvement spans seven areas including environmental impact, biodiversity, water use, and data security.

These achievements follow Coty's CDP Climate Change disclosure improvement to A- in 2024 from B in 2023. The company's FY24 Sustainability Report highlighted an 82% reduction in Scope 1 and 2 emissions since 2019, a 65% cut in air freight emissions, and 100% renewable electricity usage in owned facilities.

Coty Inc. (NYSE: COTY) has announced the sale of its 20% stake in SKKN by Kim to SKIMS, marking the end of its partnership with Kim Kardashian. Following this transaction, SKIMS will consolidate the beauty and lifestyle ventures under a single brand.

The partnership, which began with Coty's investment in Kim Kardashian's beauty business in 2020 and was completed in 2021, has now concluded. Anna von Bayern, CEO of Kylie Cosmetics, highlighted the company's continued success with Kylie Cosmetics, which has grown 1.5x in the last two years and where Coty maintains majority ownership and perpetual license.

The proceeds from this divestment will be used to advance Coty's deleveraging strategy and invest in broader brand portfolio innovations. Coty continues to operate with its extensive prestige and mass beauty brands across fragrance, color cosmetics, skin and body care categories.

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.