Coty Withdraws FY26 Guidance After 70% Consumer Beauty Plunge and CEO Exit
Coty's Q2 2026 operating income fell 70% in Consumer Beauty and 18% in Prestige, leading to withdrawal of FY26 EBITDA and free cash flow guidance. Shares dropped over 8% after the Feb. 5 report, and Hagens Berman launched a class action over alleged misleading statements and CEO Sue Nabi's exit.
1. Q2 2026 Segment Performance
Coty's Q2 2026 results revealed a 70% year-over-year drop in Consumer Beauty operating income and an 18% decline in Prestige segment profits, driven by intensified promotions and retailer destocking headwinds during the holiday quarter.
2. Abrupt CEO Departure
On December 12, 2025, Coty announced the sudden resignation of CEO Sue Y. Nabi without explanation, heightening investor concern and contributing to a sharp share price decline before the full earnings release.
3. FY26 Guidance Withdrawal
During the February 5 earnings call, Coty withdrew its full-year 2026 adjusted EBITDA target of $1 billion and its free cash flow guidance, and projected mid-single-digit like-for-like revenue declines in Q3 due to ongoing margin pressures.
4. Securities Class Action Filed
Shareholders rights firm Hagens Berman filed a securities class action covering November 5, 2025 to February 4, 2026, alleging Coty misled investors about slowing segment trends and failed to disclose the severity of the Consumer Beauty downturn prior to the profit warning and CEO exit.