Coty (COTY) faces revenue pressure as destocking, Middle East disruption weigh on Q1 results

Coty Inc. (COTY) reported a year-over-year revenue decline and missed adjusted earnings-per-share expectations in its fiscal first quarter, with management citing European retailer destocking, Middle East disruption and heavy promotions as key pressures. Executive Chairman and Interim CEO Markus Strobel said Coty’s shift toward a sellout-driven strategy, focused on consumer purchases rather than retailer shipments, affected quarterly performance. The company said CoverGirl and Sally Hansen outperformed in U.S. unit volumes despite weaker overall sales. Investors are watching whether Coty can narrow the gap between sell-in and sellout trends, reduce SKUs under its Coty.Curated initiative and stabilize margins through efficiency measures. Coty shares recently traded at $2.34, down 8.6% from $2.56 before the earnings release.