Coty Reports Q2 Results Amid Weak Consumer Beauty Sales
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 15 2024
0mins
Should l Buy COTY?
Coty Inc's shares fell by 21.59% as the company hit a 52-week low amid disappointing earnings results.
Coty reported Q2 results showing a net revenue of $1.678 billion, a slight increase year-over-year, but an adjusted net income loss of $126.9 million raised concerns. The company has withdrawn its FY26 guidance for EBITDA and free cash flow, anticipating a mid-single-digit percentage decline in Q3 revenues primarily due to weakening trends in Consumer Beauty sales. This has led to a significant drop in investor confidence, contributing to the stock's decline.
The implications of these results indicate that Coty is facing substantial challenges in the competitive beauty market, and the strategic framework 'Coty. Curated.' may need to be more aggressively implemented to regain market share.
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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: 2.560
Low
2.50
Averages
4.30
High
10.00
Current: 2.560
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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