Coty Shares Fall as Weak Guidance Overshadows Revenue Beat

Earnings

โดย Insider Monkey·

Summary · why it matters

Coty shares dropped about 7% after the company reported a wider-than-expected adjusted loss and issued weaker near-term profit guidance, despite a fourth-quarter revenue beat. Revenue rose 1.3% to $1.27 billion, above the consensus forecast for a 4.6% decline, but the adjusted loss was $0.02 per share versus the $0.01 consensus loss, like-for-like sales fell 1%, and the reported net loss widened to $141 million. Coty expects first-quarter adjusted earnings of $0.11 to $0.13 per share, below the $0.14 consensus estimate, and projects like-for-like revenue to decline by a low- to mid-single-digit percentage. Management withheld fiscal 2027 guidance and called the period a transition year, even though fiscal 2025 carried the same label. The company received $250 million at the signing of the Gucci Beauty agreement and is due another $150 million by September 30, 2027, subject to a possible holdback of up to $30 million, but returning the license early will remove a meaningful source of sales and profit beginning in fiscal 2028.

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