Coty Reports Disappointing Q4 Fiscal 2024 Results

Coty Inc. reported a disappointing fourth-quarter fiscal 2024 performance, with an adjusted loss of $0.03 per share, missing the Zacks Consensus Estimate of earnings of $0.04 per share and resulting in a 175% earnings surprise. Revenue for the quarter was $1.36 billion, slightly up from $1.35 billion in the previous year but missing the consensus estimate of $1.38 billion. The company was negatively impacted by a 2% revenue hit from the divestiture of the Lacoste fragrance license, and cautious retailer orders due to uncertain consumer spending. Despite these setbacks, Coty saw significant e-commerce growth and aims for financial recovery in fiscal 2025, supported by new product launches and strong commercial strategies. The company projects adjusted per-share profit between $0.54 and $0.57 and expects like-for-like sales to grow by 6% to 8%. Coty’s gross margin improved by 130 basis points to 64.2%, fueled by growth in both its Prestige and Consumer Beauty segments.