Coty Inc (NYSE:COTY) shares are tumbling Thursday after the company posted a surprise loss for the fourth quarter. Multiple analysts also cut price targets on the stock following the print.
What Happened: Coty beat fourth-quarter revenue estimates of $1.20 billion when it reported revenue of $1.25 billion, but the company missed earnings estimates by a wide margin, reporting a loss of 5 cents per share versus estimates for positive earnings of 2 cents per share.
Net revenue fell 8% year-over-year as the company faced headwinds from U.S. softness, retailer destocking, fragrance phasing off a strong FY24 and pressure in mass cosmetics.
"Consumer demand for beauty continues to grow at a solid pace, with ongoing fragrance category outperformance, even as retailers are acting with caution in the current environment,” said Sue Nabi, CEO of Coty.
Coty guided for adjusted earnings of 33 cents to 36 cents per share in the first half of fiscal 2026. The company said it’s transferring production of mass fragrances and entry prestige fragrances to the company’s U.S. manufacturing plant in response to the shifting global tariff landscape.
Following the company’s quarterly results, Citigroup analyst Filippo Falorni downgraded Coty from Buy to Neutral and lowered the price target from $6.50 to $4.25. Evercore ISI Group also cut its price target from $10 to $7, but maintained an Outperform rating.
COTY Price Action: Coty shares were trading at new 52-week lows at last check. The stock was down 20.88% at $3.85 at the time of publication Thursday, according to Benzinga Pro.
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