Coty Q4 Revenue Flat At $1.68 B While EPS Miss and Margins Shrink
Beauty products maker Coty reported flat Q4 revenue of $1.68 billion, narrowly topping forecasts, but adjusted EPS of $0.14 fell short of the $0.18 estimate. Organic revenue slid 3% year-over-year, gross margin declined 3 percentage points, and operating margin dropped 7.2 points, pushing shares down over 12%.
1. Q4 Earnings Results
Coty reported Q4 fiscal 2025 revenue of $1.68 billion, essentially flat from a year earlier, narrowly exceeding consensus. Adjusted EPS came in at $0.14, missing the $0.18 consensus and marking a significant earnings shortfall.
2. Sales and Margin Performance
Organic revenue, excluding currency and acquisition effects, decreased 3% year-over-year. Gross margin contracted by 3 percentage points and operating margin fell by 7.2 points compared to Q4 2024, reflecting promotional activity, tariffs and softer consumer demand.
3. Market Reaction
Shares tumbled more than 12% in afternoon trading on the profit miss and deteriorating profitability metrics. The sharp drop underscores investor concern over Coty’s ability to restore growth and improve margin profiles going forward.