Coty Inc. (NYSE:COTY) shares tumbled 16.46%, to $4.06 in after-hours trading on Wednesday, following mixed fourth-quarter fiscal results that saw revenue beat expectations while earnings fell short of analyst estimates.
Check out the current price of COTY stock here.
Revenue Beats Amid Market Headwinds
The global beauty company reported fourth quarter revenue of $1.25 billion, surpassing Wall Street estimates of $1.20 billion. However, total revenue declined 8% year-over-year, reflecting ongoing market challenges including U.S. consumer softness and retailer destocking pressures.
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Earnings Miss Weighs on Investor Sentiment
Coty posted an adjusted loss of 5 cents per share for the quarter, missing analyst expectations for positive earnings of 2 cents per share. The earnings shortfall contributed to the sharp after-hours decline, with shares falling to $4.06 from the closing price of $4.86.
Cash Flow Remains Positive Despite Challenges
The New York City-based company generated $83.2 million in operational cash flow and $34.9 million in free cash flow during the quarter. Coty ended the period with $257.1 million in cash and cash equivalents against $4.01 billion in total debt, maintaining a debt-heavy balance sheet structure.
Management Outlook Points to Recovery Path
CEO Sue Nabi acknowledged current headwinds, including “U.S. softness, retailer destocking, fragrance phasing off a strong FY24, and pressure in mass cosmetics.”
Despite challenges, Nabi emphasized that consumer demand for beauty products continues growing at a solid pace. For fiscal 2026’s first half, Coty expects adjusted earnings between 33-36 cents per share, signaling management’s confidence in recovery momentum.
Price Action: COTY shares closed at $4.86 on Wednesday, down 0.61% on the day. The stock has traded between $4.46 and $10.30 over the past year, according to Benzinga Pro data.
Benzinga's Edge Stock Rankings indicates COTY stock has a negative trend across all time frames. Know the stock value of other cosmetic sector players.
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