COTY INC. SEC 10-Q Report

COTY INC., a global beauty company known for its portfolio of well-known brands in fragrance, color cosmetics, and skincare, has released its Form 10-Q report for the third quarter of fiscal year 2025. The report reveals significant financial and operational challenges faced by the company, including a decline in net revenues and profitability, as well as strategic initiatives aimed at cost reduction and operational efficiency.

Financial Highlights

• Net Revenues: $1,299.1 million, reflecting a decrease from $1,385.6 million in the prior year period, indicating a decline in sales performance.
• Gross Profit: $832.4 million, down from $897.8 million, showing a reduction in profitability before operating expenses.
• Operating (Loss) Income: $(280.4) million, compared to an income of $77.8 million, highlighting a significant downturn in operational performance.
• Net (Loss) Income: $(402.2) million, a substantial decline from a net income of $8.8 million, indicating challenges in maintaining profitability.
• Net (Loss) Income Attributable to Coty Inc.: $(405.7) million, compared to $3.8 million, reflecting a major impact on the company's bottom line.
• Net (Loss) Income Attributable to Common Stockholders: $(409.0) million, compared to $0.5 million, showing a significant loss for shareholders.
• Earnings per Common Share - Basic: $(0.47), compared to $0.00, indicating a decrease in earnings available to common shareholders.
• Earnings per Common Share - Diluted: $(0.47), compared to $0.00, reflecting a decrease in diluted earnings per share.

Business Highlights

• Revenue Segments: The company operates in two main segments: Prestige and Consumer Beauty. The Prestige segment generated $829.4 million in net revenues for the three months ended March 31, 2025, while the Consumer Beauty segment generated $469.7 million. For the nine months ended March 31, 2025, Prestige contributed $3,059.6 million and Consumer Beauty contributed $1,580.9 million.
• Product Category Performance: Fragrance products accounted for 65.4% of net revenues in the three months ended March 31, 2025, showing an increase from 61.6% in the same period of 2024. Color Cosmetics represented 24.5% of net revenues, a decrease from 28.4% in 2024. Body Care & Other and Skincare products accounted for 5.8% and 4.3% of net revenues, respectively.
• Future Outlook: The company announced a Fixed Cost Reduction Plan aimed at strengthening its operating model and simplifying its fixed cost structure, expected to be executed through the first half of fiscal 2027. This plan is anticipated to result in significant cost savings and operational efficiencies.

SEC Filing: COTY INC. [ COTY ] - 10-Q - May. 07, 2025