Coty Inc. shares fell 5.9% in pre-market trading to $2.85 after the beauty company reported mixed fourth-quarter results and cautious guidance that contrasted with recent market strength.
The stock had surged more than 10% during Wednesday’s regular session following the release of after-hours earnings, but the advance reversed as investors focused on weaker-than-expected profitability and the absence of a full-year outlook for fiscal 2027. The shares remain well below the 52-week high of $4.56.
For the quarter ended June 30, Coty posted revenue of $1.27 billion, exceeding the consensus estimate of approximately $1.19 billion. However, adjusted loss per share came in at $0.02, missing the forecast of $0.01. Like-for-like revenue declined 1%, with management attributing a roughly 1% headwind to the ongoing conflict in the Middle East.
Full-year revenue for fiscal 2026 totaled $5.81 billion, down from $5.89 billion in the prior year. Management described the coming fiscal 2027 as a "transition year" and did not provide a full-year outlook.
First-quarter fiscal 2027 guidance was below expectations. Adjusted EPS is projected between $0.11 and $0.13, below the $0.14 estimate, while like-for-like revenue is expected to decline by a low- to mid-single-digit percentage.
Leadership changes were also announced. CFO Soraya Benchikh, previously at British American Tobacco, will succeed Laurent Mercier as CFO effective September 1, 2026.
Analysts maintained mixed views. Barclays reiterated a Sell rating, Jefferies kept a Hold rating, while TD Cowen raised its price target to $2.90 (Hold) and Morgan Stanley lifted its target to $2.50 (Equal Weight).
The broader market showed modest gains, with the S&P 500 up 0.21%, the Dow Jones Industrial Average rising 0.22%, and the Nasdaq Composite advancing 0.16%. Estée Lauder climbed 16.30% and Elf Beauty gained 7.72%.
