Latest news with #CotyInc
Business of Fashion
5 hours ago
- Business
- Business of Fashion
Coty Shares Surge on Report Company Looking to Sell Off Units
Shares of Coty Inc. jumped following a report the embattled cosmetics and perfume company is contemplating splitting up the business. The stock rose as much as 13 percent after Women's Wear Daily said the company is in the early stages of a sale process, citing 'multiple industry sources' it didn't identify. Coty's shares declined 32 percent this year through the close Friday, worse than performance of competitors and major equity indexes. WWD reported Coty is considering the sale of its luxury and consumer divisions in separate pieces, with Interparfums Inc. interested in its high-end fragrance brands Burberry and Hugo Boss. Coty didn't immediately respond to a request for comment. Interparfums didn't immediately provide a comment. Coty's sales have declined for two consecutive quarters as shoppers in North America and Asia pull back. Analysts are projecting total sales will fall 12 percent in the current quarter. The mass-market unit, which includes brands such as Covergirl, appears to be attracting less interest amid a slowdown in beauty spending in Asia and trade tensions, according to WWD. By Redd Brown Learn more: Coty to Cut 700 Jobs As Part of Cost-Saving Initiative The American beauty conglomerate announced on Thursday that a newly enhanced cost-saving programme will cull 700 jobs across the globe, around 5 percent of its workforce.
Reuters
9 hours ago
- Business
- Reuters
CoverGirl parent Coty exploring sale, WWD reports
June 16 (Reuters) - Beauty company Coty (COTY.N), opens new tab is seeking buyers for a selloff in two parts, fashion trade publication WWD reported on Monday, citing multiple industry sources. The company intends to sell both its luxury segment, which houses brands such as Hugo Boss, Gucci and Burberry, and its consumer division, including CoverGirl and Max Factor, the report said. U.S.-listed shares of Coty jumped 7% during afternoon trading. However, the stock has fallen nearly 25% this year as the company grapples with a worsening macroeconomic environment and President Donald Trump's erratic trade policy. The company cut its annual profit forecast and postponed its investor day in May, and said that although its tariff exposure was low, it planned to shift some production from Europe to the U.S. while broadening its sourcing of raw materials outside China. Coty was in discussions with premium perfume maker Interparfums ( opens new tab about the sale of its luxury business, the report said, adding that the talks were in early stages. Coty said it does not comment on rumor and speculation, while Interparfums did not immediately respond to a Reuters request for comment.
Bloomberg
10 hours ago
- Business
- Bloomberg
Coty Shares Surge on Report Company Looking to Sell Off Units
Shares of Coty Inc. jumped following a report the embattled cosmetics and perfume company is contemplating splitting up the business. The stock rose as much as 13% after Women's Wear Daily said the company is in the early stages of a sale process, citing 'multiple industry sources' it didn't identify.
Yahoo
20-05-2025
- Business
- Yahoo
Coty Trading Cheaper Than Industry: What's the Next Best Move?
Coty Inc. COTY is currently trading at a discount to its historical and industry benchmarks. COTY stock trades at a forward 12-month price-to-earnings ratio of 10.57, below its median level of 13.30 in the past year and lower than the industry's average of 23.01. This suggests that COTY may be undervalued relative to its earnings potential, presenting an attractive opportunity for investors. The company's current Value Score of B further highlights its potential for long-term growth. Image Source: Zacks Investment Research Coty's shares have lost 11.9% in the past three months compared with the industry and the S&P 500 index's decline of 8.6% and 0.9%, respectively, highlighting a more modest performance amid broader market us analyze the fundamentals of Coty to understand the key drivers behind its market position and financial resilience. Coty's focus on six strategic pillars has been instrumental in driving sustainable growth. These include stabilizing Consumer Beauty brands, accelerating luxury fragrances, expanding into the skincare segment, enhancing e-commerce and direct-to-consumer capabilities, growing in China and leading the industry in sustainability. This multi-pronged strategy helped the company maintain its competitive edge, especially in the high-growth Prestige beauty continued to outperform the market in e-commerce sell-out across both its Prestige and Consumer Beauty divisions during the third quarter of fiscal 2025. E-commerce represents approximately 20% of the company's total sales, underscoring its growing importance as a strategic channel. Looking ahead, Coty plans to further strengthen this channel with the launch of another brand on Amazon in the first quarter of fiscal 2026. In addition, the company is also tapping into emerging platforms such as TikTok Shop to drive consumer engagement and brand visibility. These highlight the company's robust digital capabilities and brand is progressing well with the All In to Win transformation program across five key work areas, driving notable improvement in cost, gross margins, sales growth and cash. The company's cost reduction program has been helping it redirect capital to structural growth capabilities and teams. In the third quarter of fiscal 2025, Coty achieved approximately $40 million in cost savings, with most of the savings in gross margin-related areas. For the full-fiscal year, the company remains on track to deliver total productivity savings of around $120 million. Looking ahead, Coty plans to accelerate growth in its Prestige division in fiscal 2026 with two major fragrance launches and U.S. expansion of a top brand. The company aims to capture opportunities across ultra-premium scents, body mists and pen sprays. In Consumer Beauty, Coty will roll out new fragrance lines with key retailers and expand into adjacent categories. Innovation will be supported by new technologies across cosmetics. These efforts are backed by a focus on winning channels like e-commerce and TikTok Shop to reinforce Coty's global fragrance leadership. Coty's U.S. operations, critical to its global footprint, were the primary driver of the like-for-like sales decline in the third quarter of fiscal 2025 and represented the biggest headwind to year-to-date performance. In response, Coty has announced U.S. market leadership changes and organizational restructuring aimed at enhancing agility and execution across its U.S. operations. Until then, the continued underperformance in this core geography could erode investor sentiment and raise questions about Coty's ability to regain market share in its largest strong Prestige division faced a convergence of three significant headwinds in the third quarter of fiscal 2025. First, the overall prestige fragrance market slowed notably. Second, the company's innovation calendar in fiscal 2025 lacked major new product launches. Third, the company continued to work through elevated inventory levels at retailers. In addition to the triple headwinds, Prestige's makeup sales also declined. Together, these pressures highlight the vulnerability of the Prestige segment in the current-fiscal has been experiencing higher advertising and consumer promotions (A&CP) spending for a while now. In the third quarter of fiscal 2025, the A&CP percentage remained in the high 20s, showing a year-on-year rise. If not effectively managed, the continued increase in such expenses could further impact Coty's margins and profitability in the coming quarters. Image Source: Zacks Investment Research Coty has shown strategic discipline through its transformation efforts, digital expansion and focus on high-growth channels. Despite recent pressures, including softness in the U.S. market and inventory challenges, the company remains well-positioned for long-term growth, supported by its strong presence in Prestige beauty and e-commerce. While its discounted valuation offers an attractive entry point, near-term headwinds may limit upside potential. All considered, existing investors may choose to hold their positions as Coty navigates its recovery. Currently, Coty carries a Zacks Rank #3 (Hold). Nomad Foods Limited NOMD manufactures, markets and distributes a range of frozen food products in the United Kingdom and internationally. It currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Nomad Foods' current fiscal-year sales and earnings implies growth of 5% and 7.3%, respectively, from the prior-year levels. NOMD delivered a trailing four-quarter earnings surprise of 3.2%, on International, Inc. MDLZ manufactures, markets and sells snack food and beverage products in Latin America, North America, Asia, the Middle East, Africa and Europe. It presently carries a Zacks Rank of 2 (Buy). MDLZ delivered a trailing four-quarter earnings surprise of 9.8%, on average. The Zacks Consensus Estimate for Mondelez International's current financial-year sales indicates growth of 4.9% from the year-ago numbers. Oatly Group AB OTLY, an oatmilk company, provides a range of plant-based dairy products made from oats. It presently carries a Zacks Rank of 2. OTLY delivered a trailing four-quarter earnings surprise of 25.1%, on consensus estimate for Oatly Group's current fiscal-year sales and earnings implies growth of 2.7% and 56.6%, respectively, from the year-ago figures. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report Coty (COTY) : Free Stock Analysis Report Nomad Foods Limited (NOMD) : Free Stock Analysis Report Oatly Group AB Sponsored ADR (OTLY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
09-05-2025
- Business
- Yahoo
Why Coty Inc. (COTY) Nosedived on Wednesday
We recently published an article titled . In this article, we are going to take a look at where Coty Inc. (NYSE:COTY) stands against the other stocks. The stock market bounced back from the previous day's losses, with all major indices finishing higher as investors cheered the central bank's decision to keep interest rates unchanged. On Wednesday afternoon, the Federal Reserve kept rates steady at a range of 4.25 percent to 4.5 percent, saying that it was not in a hurry to cut rates and could still 'wait and see' the impacts of President Donald Trump's tariff policies. The Dow Jones rallied by 0.70 percent, the S&P 500 increased by 0.43 percent, and the Nasdaq grew by 0.27 percent. Beyond the major indices, bucked a broader market optimism as investors sold off on a series of disappointing news. To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume. A close-up of a woman's face wearing a beauty product, highlighting the company's range of luxury items. Coty Inc. (NYSE:COTY) dropped its share prices by 11.61 percent on Wednesday to end at $4.57 apiece following disappointing earnings coupled with a weak outlook for the rest of the year. In its latest earnings release, Coty Inc. (NYSE:COTY) said it swung to an attributable net loss of $405.7 million for the third quarter ending March 2025 from a net income of $3.8 million year-on-year. This pulled the company to a nine-month net loss of $299.1 million versus a $186.3 million net income in the same period a year earlier. Net revenues for the quarter were also lower by 6 percent to $1.299 billion from $1.385 billion, while net revenues for the nine-month period dipped by 2 percent to $4.64 billion from $4.75 billion. Looking ahead, Coty Inc. (NYSE:COTY) said it expects a high single digit decline in sales for the fourth quarter of the current fiscal year amid the continuing current category trends coupled with its ongoing interventions 'to clean up the baseline of the business to prepare for a healthier [full-year] 2026.' Overall COTY ranks 4th on our list of Wednesday's worst performers. While we acknowledge the potential of COTY as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than COTY but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
