Coty (COTY) Posts Q4 Loss but Exceeds Revenue Projections
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 20 2025
0mins
Should l Buy COTY?
Source: NASDAQ.COM
Coty's Quarterly Performance: Coty reported a quarterly loss of $0.05 per share, missing the Zacks Consensus Estimate of $0.01, and showing a decline from a loss of $0.03 per share a year ago.
Revenue Insights: The company generated revenues of $1.25 billion for the quarter, exceeding estimates by 4.07%, but down from $1.36 billion in the previous year.
Stock Outlook: Coty's stock has decreased by approximately 29.7% this year, with a current Zacks Rank of #3 (Hold), indicating expected performance in line with the market.
Industry Context: The cosmetics industry is currently ranked in the bottom 24% of Zacks industries, which may affect Coty's stock performance moving forward.
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Analyst Views on COTY
Wall Street analysts forecast COTY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for COTY is 4.61 USD with a low forecast of 3.00 USD and a high forecast of 10.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
1 Buy
10 Hold
2 Sell
Hold
Current: 3.150
Low
3.00
Averages
4.61
High
10.00
Current: 3.150
Low
3.00
Averages
4.61
High
10.00
About COTY
Coty Inc. is a beauty company with a portfolio of brands across fragrance, color cosmetics, and skin and body care. The Company has a diverse portfolio of brands, which includes both owned and licensed. Its brand portfolio is classified into two segments: Consumer beauty and Prestige. The consumer beauty brands include Adidas, Beckham, Bozzano, Bourjois, Bruno Banani, CoverGirl, Jovan, Mexx, LeGer by Lena Gercke, Monange, Nautica, Paixao, Rimmel, Risque, Sally Hansen, and Vera Wang. Its prestige brands include Burberry, Calvin Klein, Chloe, Davidoff, Escada, Gucci, Hugo Boss, Jil Sander, Kylie Cosmetics by Kylie Jenner, Lancaster, Marc Jacobs, Miu Miu, Orveda, and Tiffany & Co. Its mass beauty brands are primarily sold through hypermarkets, supermarkets, drug stores and pharmacies, mid-tier department stores, traditional food and drug retailers, and dedicated e-commerce retailers. It markets, sells and distributes its products in over 120 countries and territories.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Coty Inc. Q2 2026 Earnings Call Insights
- Brand Focus Strategy: Coty Executive Chairman Markus Strobel emphasized a renewed focus on core brands like CoverGirl and Rimmel, noting that while sales declines have improved from high single digits to low single digits, the company still faces significant challenges in revitalizing these brands.
- Innovation Strategy Shift: The company plans to transition from large product bundles to streamlined SKU management, which will initially reduce pipeline fill in Q3 but is expected to improve sell-out velocity over time, thereby enhancing overall operational efficiency.
- Digital Marketing Investment: Coty is reallocating resources to focus on digital marketing and AI asset creation, with expectations of achieving a 70% to 80% cost reduction, which will help enhance brand competitiveness and optimize marketing strategies.
- Cautious Financial Outlook: Management anticipates a mid-single-digit sales decline in Q3, primarily driven by Consumer Beauty, and while there are expectations for profit recovery in the upcoming fiscal year, short-term challenges remain due to ongoing gross margin pressures and competitive market dynamics.
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- Return to Brick-and-Mortar: Young consumers are rediscovering the appeal of in-store shopping after years dominated by e-commerce, reflecting a longing for the carefree and familiar comfort of 2016, which could stimulate a retail resurgence.
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Coty Inc. Q2 2026 Earnings Call Insights
- Brand Focus Strategy: Coty Executive Chairman Markus Strobel emphasized a renewed focus on core brands like CoverGirl and Rimmel, noting that while sales declines have improved from high single digits to low single digits, the company still faces significant challenges in revitalizing these brands.
- Innovation Strategy Shift: The company plans to transition from large product bundles to streamlined SKU management, which will initially reduce pipeline fill in Q3 but is expected to improve sell-out velocity over time, thereby enhancing overall operational efficiency.
- Digital Marketing Investment: Coty is reallocating resources to focus on digital marketing and AI asset creation, with expectations of achieving a 70% to 80% cost reduction, which will help enhance brand competitiveness and optimize marketing strategies.
- Cautious Financial Outlook: Management anticipates a mid-single-digit sales decline in Q3, primarily driven by Consumer Beauty, and while there are expectations for profit recovery in the upcoming fiscal year, short-term challenges remain due to ongoing gross margin pressures and competitive market dynamics.
See More
2016 Nostalgia Sparks Retail Revival Potential
- Social Media Surge: Since January 1, user-generated '2016' playlists on Spotify have surged by 790%, indicating a strong nostalgic sentiment among young consumers that could drive sales for brands associated with that era.
- Return to Brick-and-Mortar: Young consumers are rediscovering the joy of in-store shopping, reflecting a longing for the carefree atmosphere of 2016, which may lead to improved performance for retailers.
- Brand Opportunities: Brands like Abercrombie & Fitch could leverage this nostalgia wave to reshape their image, particularly if they successfully distance themselves from past controversies, potentially attracting more young consumers.
- Market Outlook: Retail trends typically last about 18 months, and this nostalgia cycle is expected to persist through the midterm elections this year, possibly extending into next year, providing long-term market opportunities for related brands.
See More
Gen Z's Nostalgia for 2016 and Its Impact on Retail
- Nostalgia Trend Emergence: Gen Z's nostalgia for 2016 has rapidly spread across social media, with Spotify user-generated '2016' playlists soaring by 790% since January 1, indicating a strong yearning for the cultural elements of that time, potentially driving a revival for related brands.
- Return to Brick-and-Mortar: Young consumers are rediscovering the appeal of in-store shopping after years dominated by e-commerce, reflecting a longing for the carefree and familiar comfort of 2016, which could stimulate a retail resurgence.
- Brand Opportunities Arise: Brands like Abercrombie & Fitch and Levi Strauss, which held significant cultural relevance in 2016, may leverage this nostalgia wave to regain market traction, especially as consumers show renewed interest in classic styles.
- Market Strategy Adjustments: As nostalgia rises, brands must adjust their market strategies to align with Gen Z's desire for authenticity and less intentionality, with successful brands likely to harness this emotional connection to reshape their cultural relevance.
See More
Molina Healthcare Stock Plummets 29% After Earnings Miss
- Unexpected Quarterly Loss: Molina Healthcare reported an unexpected quarterly loss, causing its stock to plummet 29% in a single day, marking the largest drop since 2012 and indicating significant challenges in profitability.
- Weak 2026 Outlook: The company issued a weak earnings outlook for 2026, which may undermine investor confidence and further pressure the stock price, reflecting market concerns about its future growth potential.
- Strong Overall Market Performance: Despite Molina Healthcare's stock decline, the Dow Jones Industrial Average surged nearly 2% on Friday, reaching a new all-time high, indicating a market preference for value stocks that may overshadow individual stock weaknesses.
- Small Caps Outperform: Small caps showed outstanding performance on Friday, with the Russell 2000 index soaring over 3%, suggesting increased investor confidence in smaller companies, contrasting sharply with Molina's performance.
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Molina Healthcare Reports Larger Than Expected Quarterly Loss
- Quarterly Loss Report: Molina Healthcare reported a quarterly loss of $2.75 per share, significantly missing the Street estimate of a $0.33 profit, indicating substantial challenges in profitability that could undermine investor confidence.
- Revenue Performance: Despite the severe loss, Molina's quarterly revenue reached $11.38 billion, surpassing the consensus estimate of $10.86 billion, suggesting that the company still possesses some resilience in revenue growth, potentially laying a foundation for future recovery.
- Stock Price Reaction: Molina Healthcare's shares dipped 29.4% to $124.90 in pre-market trading, reflecting a negative market reaction to its earnings report, which may lead investors to reassess the stock's value.
- Market Trends: U.S. stock futures were generally higher, with Dow futures gaining around 100 points, indicating a prevailing optimism about the overall economic outlook, even as individual stocks like Molina performed poorly.
See More
Movers in the Market: Amazon, Novo Nordisk, Molina, Roblox, Hub Group, and Others
- Stock Market Movement: Stock futures increased on Friday despite concerns regarding artificial intelligence spending.
- Big Tech Earnings Impact: Recent earnings reports from major technology companies did not alleviate fears related to AI investments.
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