Coty (NYSE:COTY) Issues Earnings Results

Coty (NYSE:COTY) released its quarterly earnings results on Wednesday. The company reported $0.16 EPS for the quarter, beating analysts’ consensus estimates of $0.12 by $0.04, FiscalAI reports. The company had revenue of $1.56 billion during the quarter, compared to analysts’ expectations of $1.53 billion. Coty had a positive return on equity of 5.68% and a negative net margin of 10.42%. The firm’s revenue was down 1.4% compared to the same quarter last year. During the same period last year, the business posted $0.12 earnings per share.

Here are the key takeaways from Coty’s conference call:

• Coty’s first-quarter results beat expectations: like-for-like revenue declined 1.6%, a smaller drop than the company had guided, and adjusted EBITDA was $274 million. Management cautioned that fiscal 2027 remains a transition year and recovery may not be linear.
• Coty continued to trail its markets in sell-out: Prestige declined 2% against 3% market growth, while Consumer Beauty fell 3% as its market grew 5%. The top six Prestige brands returned to sell-out growth, but management said more improvement is needed to lift division-wide performance.
• Adjusted EBITDA fell 7% year over year, and gross margin declined 120 basis points to 63.3%, pressured by higher freight and material costs, excess and obsolete inventory, and unfavorable mix. Coty expects a high-single-digit EBITDA decline in Q2 and said elevated Middle East-related costs may persist through the rest of fiscal 2027.
• Free cash flow rose $73 million year over year to $85 million, and net debt fell about $300 million from June to approximately $2.6 billion, or 3.1 times leverage. The company attributed the debt reduction partly to cash flow and $250 million in proceeds related to the Gucci transition; it expects more than $300 million of free cash flow in the first half.
• More concentrated investment showed early traction: Coty’s six core Prestige brands grew 5% in the quarter, with five of the six growing, and launches including Marc Jacobs Beauty were tracking ahead of plan. Management expects continued growth from the core six in Q2, but at a more moderate pace, and remains committed to completing its strategic review by the end of 2026.

Coty Stock Performance

Shares of COTY stock traded up $0.14 during mid-day trading on Wednesday, reaching $3.44. The stock had a trading volume of 8,141,726 shares, compared to its average volume of 5,224,946. The business’s fifty day moving average is $2.89 and its 200-day moving average is $2.54. The company has a current ratio of 0.75, a quick ratio of 0.42 and a debt-to-equity ratio of 0.96. The firm has a market cap of $3.03 billion, a price-to-earnings ratio of 15.67, a PEG ratio of 0.64 and a beta of 0.83. Coty has a 1-year low of $1.82 and a 1-year high of $4.16.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on COTY shares. The Goldman Sachs Group restated a “neutral” rating and set a $2.60 price objective on shares of Coty in a report on Thursday, August 20th. Morgan Stanley lifted their target price on shares of Coty from $2.50 to $2.75 and gave the stock an “equal weight” rating in a research note on Tuesday, August 25th. TD Cowen assumed coverage on shares of Coty in a research note on Friday, October 30th. They issued a “hold” rating for the company. Jefferies Financial Group boosted their target price on shares of Coty from $2.40 to $2.95 and gave the stock a “buy” rating in a research report on Monday, October 19th. Finally, Zacks Research lowered shares of Coty from a “hold” rating to a “strong sell” rating in a research note on Monday, October 26th. One research analyst has rated the stock with a Buy rating, nine have assigned a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Reduce” and a consensus target price of $3.21.

Key Stories Impacting Coty

Here are the key news stories impacting Coty this week:

• Positive Sentiment: Fiscal Q1 FY2027 EPS was 16 cents versus the 12-cent consensus, and revenue of $1.56 billion topped the $1.53 billion estimate. Coty also said adjusted EBITDA and free cash flow were ahead of expectations, offering evidence of better-than-anticipated execution. Coty Announces First Quarter Fiscal Year 2027 Results
• Positive Sentiment: Coty extended its Marc Jacobs Beauty license for 40 years, securing a core prestige portfolio brand and the potential to continue developing established fragrance lines. The long duration supports brand continuity, though the announcement did not quantify its financial contribution. Coty Extends Marc Jacobs License
• Negative Sentiment: Despite the quarterly beat, like-for-like sales declined, and Coty forecast a soft second-quarter profit as higher costs weigh on its turnaround. That outlook may temper investor confidence in whether improved cash flow and stronger prestige brands can translate into sustained growth. Coty forecasts soft second-quarter profit

About Coty

Coty Inc is a global beauty company that develops, manufactures and markets fragrances, cosmetics, skin care and body-care products. Its portfolio includes luxury, prestige and mass-market brands, with products sold through department stores, specialty retailers, e-commerce platforms and other distribution channels.

The company’s brands have included CoverGirl, Rimmel London, Max Factor, Bourjois, Gucci Beauty, Calvin Klein, Marc Jacobs, Burberry, Hugo Boss and Chloé, among others. Coty also participates in professional beauty through hair-care and salon brands, including the Wella portfolio.

Founded in Paris in 1904 by François Coty, the company built its early reputation in fragrance before expanding into broader beauty categories and international markets.