Coty Inc (NYSE:COTY) reported a surprise loss for the fiscal fourth quarter, sending its shares more than 20% lower on Thursday.
The beauty brand reported a loss of $72.1 million, an improvement from a loss of $100.2 million in the year-ago period but worse than expectations of a profit of $37.6 million.
Adjusted loss per share was $0.05 compared to estimates of earnings per share of $0.01.
Revenue was down 8% year-over-year at $1.25 billion, slightly better than estimates of $1.21 billion, as comparable sales fell 9% from the year-ago period.
The company said it expects sequential trend improvement in like-for-like sales and adjusted EBITDA through fiscal 2026, returning to growth in the second half of 2026.
“In fiscal year 2025, despite headwinds from US softness, retailer destocking, fragrance phasing off a strong fiscal year 2024, and pressure in mass cosmetics, we moved with speed and focus to return Coty to a path of consistent and profitable growth,” Coty CEO Sue Nabi said.
"While Q4 was broadly in line with expectations as we set the baseline for a strong launch calendar in FY26, and we expect our organizational changes will start yielding results in the coming year, there is more to do.”