Shares of Coty tumbled 20% in premarket trading on Thursday after the cosmetics maker reported a surprise loss for its fiscal fourth quarter and issued weak sales guidance, citing cautious retailer orders and softer consumer demand.
The company posted a net loss attributable to shareholders of $72.1 million, compared with analyst expectations of $37.6 million in net income. On an adjusted basis, Coty reported a loss of $0.05 per share, missing forecasts for a profit of $0.01. Revenue fell 8% year-over-year to $1.25 billion, though it came in slightly above estimates. Like-for-like sales dropped 9%.
CEO Sue Nabi said retailers acted with caution during the year, contributing to reduced orders. She added that Coty’s performance was also impacted by weakness in U.S. demand, pressures in the mass cosmetics segment, and slower fragrance sales following a strong fiscal 2024.
For the current quarter, Coty expects like-for-like sales to decline between 6% and 8%, with second-quarter sales projected to fall 3% to 5%. The company noted that tariff and macroeconomic uncertainty are adding to the cautious stance from retailers, while promotional activity in the market has intensified. Coty anticipates a return to positive sales growth in the second half of the fiscal year.
Coty shares are down 30% so far in 2025, prior to Thursday’s decline.
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