Coty Inc. Class A (COTY)

Coty Inc.'s stock price has declined significantly over the past year. In August 2025, Coty reported an 8% revenue drop in fiscal Q4 2025 due to waning demand for mass-market products in the US. In September 2025, Coty announced a strategic realignment, initiating a formal strategic review for specific assets within its Consumer Beauty division. In October 2025, Coty's stock price was impacted by the announcement of a strategic review of its Consumer Beauty business. In November 2025, Coty reported Q1 FY26 results in line with expectations, anticipating a return to profitable sales growth in the second half of FY26. In January 2026, Coty's stock remained in focus after a CEO change and analyst downgrades.

Demand for Coty Inc.'s products is subject to seasonal factors, with the holiday period significantly influencing the outlook for the second half of the fiscal year. Evolving retail channel dynamics, particularly in the mass beauty market and color cosmetics, can negatively impact the business during periods of slowing consumer spending. Coty expects seasonally strong free cash flow in the first half of fiscal year 2026.

Coty Inc. is a multinational beauty company founded in Paris in 1904, operating in the cosmetics, fragrance, skincare, and hair care industries. It is one of the world's largest beauty firms with a diversified portfolio of well-known brands, operating through two primary divisions: Prestige, focusing on luxury beauty products, and Consumer Beauty, managing mass-market brands. Coty owns approximately 40 brands as of 2024.

Coty Inc. serves consumers globally, selling products in over 120 countries and territories. The company's global headquarters are in Amsterdam, Netherlands, with divisional headquarters in New York City, Paris, and Geneva. Coty distributes its products through various channels, including retailers, supermarkets, drug stores, e-retailers, and direct-to-consumer websites.

Coty has focused on a strategic transformation, reducing debt and improving financial stability. The company has strengthened its leadership in the prestige fragrance business, with prestige fragrances becoming a $3.5 billion business. However, the Consumer Beauty division has experienced ongoing weakness, leading to a strategic review of these assets. Retailers have been cautious, impacting Coty's sales, and a recent CEO change has brought the company under renewed scrutiny. Coty is working to improve its Consumer Beauty performance and is confident in returning to profitable sales growth in the second half of FY26.

Coty Inc. has a diverse ownership structure, including institutional, retail, and individual investors. Approximately 22.83% of the company's stock is owned by Institutional Investors, 57.46% by Insiders, and 19.71% by Public Companies and Individual Investors. JAB Holdings B.V. is the largest shareholder.