COTY
Coty Inc.3.2700
-0.0100-0.31%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q2 '26
Consumer Beauty turnaround details emerge
Q&A detailed Consumer Beauty's Color the Future plan, spotlighting early wins on CoverGirl Lash Blast and Rimmel with declines easing to low-single digits, FY26 streamlined bundles creating Q3 pipeline dip but boosting sellout velocity, and AI experiments slashing asset costs 70-80%. Management outlined Gucci license exit offsets via Hugo Boss growth, Swarovski blockbuster in 2027, and openness to early Kering termination. Gross margins pressured by end-Q2 promotions, $8M tariffs, FX, and volume absorption, persisting into Q3 before Q4 recovery. Q3 marks the hump. Prestige sellout lags core focus amid U.S. softness; analysts' channel and control queries drew operational discipline pledges. Watch sellout traction.
Key Stats
Market Cap
2.86BP/E (TTM)
-Basic EPS (TTM)
-0.46Dividend Yield
0%Recent Filings
10-Q
Q2 FY2026 results
Coty's Q2 FY2026 revenues edged up 0.5% y/y to $1,678.6M (derived), driven by Prestige's 1.6% y/y gain to $1,133.6M from Gucci and Kylie fragrances, yet Consumer Beauty dipped 1.6% y/y to $545.0M on U.S. color cosmetics weakness. Operating income tumbled 45% y/y to $148.2M with margins shrinking to 8.8% from 16.1%—gross margins contracted 2.9 points to 36.2% on tariffs and promotions, while amortization doubled to $74.1M from accelerated licenses. Net loss hit $123.6M versus $23.7M profit, as $201.9M Wella sale loss dwarfed lower interest; operating cash flow for H1 surged 17% y/y to $624.9M, funding $750M Wella proceeds to slash long-term debt 24% to $2,986.8M. Debt matures mostly post-2027. Talc litigation risks loom large.
8-K
Q2 in line, Wella sale cuts debt
Coty reported Q2 FY26 results broadly in line with outlook, with LFL net revenues down 3% to $1,678.6M amid Consumer Beauty weakness, yet free cash flow hit $513.1M. Wella stake sale fetched $750M cash, slashing financial net debt to $2,601.4M and leverage to 2.7x—nine-year lows. New interim CEO launches 'Coty. Curated.' framework; withdrew FY26 guidance, eyes Q3 EBITDA $100-110M. Debt slashed sharply.
8-K
Strobel named interim CEO
Coty Inc. appointed Markus Strobel, ex-P&G Global Skin & Personal Care President, as Executive Chairman and Interim CEO effective January 1, 2026, succeeding Sue Y. Nabi who steps down December 31, 2025, with Peter Harf retiring as Chairman. Strobel gets $1.25M base salary, $940K sign-on, $3M RSUs, and 6M options. New board addition: Patricia Capel. Leadership shakeup eyes Consumer Beauty review.
8-K
Coty sells Wella stake to KKR
Coty's subsidiary sold its entire stake in Rainbow JVCo (Wella) to KKR-managed Tides Holdco on December 18, 2025, for $750M cash plus a loan note converting to 45% ordinary shares. Coty retains consent rights, board observer status, and pro-rata profit share after KKR's preferred return. Deal triggers ~$200M Q2 impairment; deleverages balance sheet sharply. Exit rights favor KKR.
8-K
Coty annual meeting results
Coty Inc. held its annual stockholder meeting on November 6, 2025, with 80.43% quorum. All nine director nominees won election by plurality, including Peter Harf and Sue Nabi despite notable withhold votes. Stockholders approved executive comp advisory (52% for) and ratified Deloitte as auditors (99% for). Board continuity intact.
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