Coty (COTY) Q4 Results: Flat Sales, Margin Compression; Portfolio Simplification and Channel Shifts Forefront

Coty (NYSE:COTY) reported Q4 CY2025 results exceeding revenue expectations, with sales flat year-on-year at $1.68B and non-GAAP profit of $0.14/share, 24.2% below consensus. The market reacted negatively as management cited SKU proliferation, promotional intensity, and operational inefficiency in Consumer and Prestige Beauty, driving declines in iconic brands to the low to mid-single digits. Looking ahead, Coty plans portfolio rationalization, improved innovation discipline, and focused investment in digital and new channels to restore sell-out and market share. CEO Markus Strobel emphasized execution and demand alignment, with recovery expected to be gradual and contingent on top-line improvement and gross margin stabilization. <note>Date reference: February 6, 2026</note>