Coty slides after surprise quarterly loss, warns of weak first half

Investing.com -- Coty reported a surprise quarterly loss and said it expects sales and profit to decline in the first half of its new fiscal year before returning to growth. Shares of the beauty products maker fell 10% in after-hours trading.

The CoverGirl and Gucci fragrances owner posted a fourth-quarter loss of 5 cents per share, compared with analysts’ average estimate of a 2 cent profit.

Revenue rose to $1.25 billion from $1.21 billion a year earlier, above forecasts of $1.21 billion.

Coty (NYSE:COTY) said it expects like-for-like sales to fall 6% to 8% in the first quarter of fiscal 2026 and 3% to 5% in the second, pressured by cautious retailer orders, tariffs and a more promotional environment.

It expects a return to growth in the second half as new fragrance launches, geographic expansion and easier comparisons take effect.

The company also forecast adjusted earnings per share of 33 to 36 cents for the first half, down by a high single to mid-teen percentage year on year. It expects adjusted EBITDA to decline in double digits in the first two quarters before rebounding later in the year.

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