Coty shares sink after the beauty conglomerate posts surprise Q4 loss
Coty shares sank nearly 20% in premarket trading Thursday as investors digested the beauty conglomerate’s disappointing Q4 results after the bell Wednesday.
The cosmetics and fragrance company posted an adjusted loss of $0.05 per share, well below Wall Street’s forecast for a $0.01 profit, according to analysts polled by FactSet. Revenue came in at $1.25 billion, topping analyst estimates of $1.21 billion but still down 8% year over year. Growth was driven by Coty’s prestige fragrance portfolio, which includes Gucci, Swarovski, and Tiffany & Co.
Looking ahead, Coty guided for adjusted EPS of $0.33 to $0.36 in the first half of its fiscal year, with stronger gains expected in the back half. Analysts are projecting full-year adjusted earnings of about $0.50 per share.
Management flagged a cautious retail backdrop, noting that retailers are destocking and consumers are trading down toward cheaper value options.
“Consumer demand for beauty continues to be solid, particularly for fragrances across price points and formats,” the company said in a statement. “At the same time, macroeconomic and tariff uncertainty is fueling cautious retailer ordering and a more promotional competitive environment.”
Coty also said it expects about $70 million in gross tariff headwinds this year, driven by new US tariffs on European-made fragrances and Chinese-sourced components. To offset the impact, Coty plans to raise prices across select categories.
Prior to the earnings release, Coty shares were down 29% year to date.
