Coty Set to Announce Q2 Earnings with Optimistic Market Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 04 2026
0mins
Should l Buy COTY?
Source: seekingalpha
- Earnings Announcement Date: Coty is set to release its Q2 2023 earnings report on February 5th after market close, with a consensus EPS estimate of $0.18, reflecting a significant year-over-year increase of 63.6%, indicating improved profitability.
- Revenue Expectations: The revenue forecast stands at $1.66 billion, representing a slight decline of 0.6% year-over-year, which highlights the impact of intensified market competition and changing consumer trends on sales.
- Historical Performance Review: Over the past two years, Coty has only beaten EPS estimates 25% of the time and revenue estimates 50% of the time, showcasing uncertainty in the company's financial forecasting.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen three upward revisions and four downward adjustments, while revenue estimates experienced seven upward revisions and one downward adjustment, indicating divergent views among analysts regarding Coty's future performance.
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Analyst Views on COTY
Wall Street analysts forecast COTY stock price to rise
12 Analyst Rating
1 Buy
9 Hold
2 Sell
Hold
Current: 2.500
Low
2.50
Averages
4.30
High
10.00
Current: 2.500
Low
2.50
Averages
4.30
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.
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- 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.
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- 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.
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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.
- 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.
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- 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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- 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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