Coty
🇺🇸 NYSE:COTY
•
Dec 31, 2024
Coty Q2 2025 Earnings Report
Key Takeaways
Coty Inc. reported Q2 FY25 net revenue of $1,669.9 million, a 3% decline year-over-year, impacted by FX headwinds and market slowdowns. Adjusted EPS came in at $0.11, down from $0.25 in the prior year. The company experienced strong gross margin expansion and operational efficiencies, but headwinds in APAC and consumer beauty weighed on performance.
Coty Revenue
Coty EPS
Coty Revenue by Segment
Coty Revenue by Geographic Location
Forward Guidance
Coty expects FY25 adjusted EPS of $0.50-$0.52, with continued gross margin expansion and cost efficiencies. FX headwinds and inventory management by retailers remain challenges.
Positive Outlook
- Prestige fragrance segment continues to outperform.
- Sustained gross margin expansion through pricing and efficiencies.
- Strong digital performance with double-digit e-commerce growth.
- New brand partnerships, including Swarovski, expanding portfolio.
- Improved leverage below 3x, reducing financial risk.
Challenges Ahead
- Headwinds in APAC, particularly China and Travel Retail.
- Softness in mass cosmetics market impacting Consumer Beauty.
- FX headwinds expected to impact reported revenue growth.
- Retailers' tight inventory management affecting replenishment orders.
- Equity swap impact negatively affecting net income and EPS.
Revenue & Expenses
Visualization of income flow from segment revenue to net income