For the quarter ended December 31, 2025, Coty reported adjusted earnings per share of $0.14, missing the consensus estimate of $0.18 and marking a modest improvement from $0.11 a year earlier. Total net revenues declined 3% year-over-year to $2.8 billion, reflecting persistent weaknesses in color cosmetics and fragrance segments in North America and Europe. The shortfall on the top and bottom lines underscores ongoing pressure on Coty’s margin structure and the need for cost optimization.

Coty swung to a net loss of $126.9 million for the quarter, compared with a net profit of $20.4 million in the prior-year period. The company cited elevated promotional spending and foreign-exchange headwinds as primary drivers of the loss. In response, management withdrew its full-year outlook, previously calling for mid-single-digit revenue growth and an adjusted operating margin of 12% to 13%, signaling heightened uncertainty around near-term cash flows and profitability targets.

In early February, Coty’s board appointed Markus Strobel as interim CEO, tasking him with a turnaround plan centered on core fragrance and skincare franchises. Strobel announced a headcount reduction of 8% and a 15% cut in discretionary marketing for non-core brands, aiming to redirect $100 million in annual savings toward high-growth segments. The new strategy also includes accelerated innovation in premium beauty lines and strengthened direct-to-consumer channels in Asia Pacific.

On February 5, 2026, Coty filed its Form 10-Q for the quarter ended December 31, 2025, with the U.S. Securities and Exchange Commission. The report, accessible via the SEC’s EDGAR system, provides detailed breakdowns of segment performance, cash flow statements showing a $250 million reduction in operating cash flow year-over-year, and disclosures on ongoing litigation related to intellectual property claims. Investors gain clarity on the company’s leverage ratio, which stood at 3.2 times net debt to EBITDA at quarter-end.