NYSE$COTY

Coty Inc · Q1 2025 earnings

Q1 2025 earnings · · Investor relations

Briefing

Achieved solid growth in Q1 2025, driven by prestige fragrances and strong gross margin expansion.

Coty Inc. reported a 2% increase in net revenues, or 4.5% on a LFL basis, driven by strong growth in prestige fragrances and EMEA. The company saw continued gross margin expansion and operating income growth, while investing in its brands. The company reiterates FY25 EBITDA Underpinned by Accelerating Actions to Adapt Coty for Future Success

  • Net revenues grew 2% reported and 4.5% LFL, despite a 1% FX headwind and a 1% headwind from the divestiture of the Lacoste license.
  • Prestige net revenues increased 5% reported and 7% LFL, driven by fragrances.
  • Consumer Beauty net revenues declined 3% reported, with LFL net revenues flat.
  • Reported gross margin increased 200 basis points year-over-year to 65.5%.

Headline financials

Total Revenue

$1.67B

Previous: $1.64B+1.8%
EPS

$0.09

Previous: $0.09+0.0%
Gross Margin

65.5%

Previous: 63.5%+3.1%
Net Debt

$3.72B

No prior period
Capital Expenditures

-$75.3M

Previous: -$62.2M-21.1%
Free Cash Flow

$82.9M

Previous: $1.6M+5081.3%
Net Income

$82.9M

Previous: $1.6M+5081.3%
Operating Income

$238M

Previous: $198M+20.4%
Gross Profit

$1.09B

Previous: $1.04B+5.1%
Cash & Equivalents

$284M

Previous: $280M+1.3%
Total Assets

$12.5B

Previous: $12.6B-0.8%
Stock-Based Comp

$17M

No prior period

Revenue & EPS history

Coty · Revenue · Quarterly

$1.67B

Q1 2025+1.8%vs Q1 2024
Beat estimate in 6 of 14 quarters(43%)
ActualEstimate

Revenue by segment

Coty · $1.64B total across 2 segments · Q1 2024

  • Prestige
    $1.06B+23.3%
  • Consumer Beauty
    $577M+9.5%

Forward guidance

Coty expects LFL sales growth in the first half of 3-4%. Coty anticipates LFL growth in the second half to be relatively consistent with the first half. Coty expects FY25 adjusted EBITDA to grow near the lower end of its prior guidance of +9-11% YoY. Coty expects FY25 adjusted EPS at the low end of its prior guidance range of $0.54-0.57, reflecting mid teens percentage growth. Coty continues to expect FY25 free cash flow to grow by a double-digit percentage YoY to the low to mid $400M range.

Tailwinds

  • Prestige fragrances remain an outperforming category.
  • Coty anticipates LFL growth in the second half to be relatively consistent with the first half, reflecting easier prior year comparisons.
  • Solid prestige fragrance performance.
  • Coty expects FY25 adjusted EPS at the low end of its prior guidance range of $0.54-0.57, reflecting mid teens percentage growth.
  • Coty is future proofing its organization and processes to better capture new opportunities, respond to changes in the market with more agility, and solidify Coty’s position as a beauty leader over the long term.

Headwinds

  • Slower end demand and significant channel shifts in U.S. mass beauty and in Asia are continuing to weigh on order levels into Q2.
  • Sell-in tracking well below sell-out.
  • Continued pressure in the Chinese mainland.
  • Continued pressure in Asia Travel Retail.
  • Continued pressure in U.S. mass cosmetics.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2025

Historical avgQ1 2025

+0.2%

Avg return

Earnings day

+0.1%

Avg return

5 days after

+1.8%

Avg return

30 days after

44%

23 / 52 earnings

Positive

+36.8%

Q2 2019

Best reaction

-25.8%

Q1 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+3.9%-9.4%-23.4%
Q2 2026-14.5%-19.7%-24.8%
Q1 2026-0.8%-5.6%-8.7%
Q3 2025-11.6%-3.1%-2.9%
Q2 2025-9.3%-17.6%-19.8%
Q1 2025-3.8%-2.4%+0.9%
Q4 2024+6.1%+4.3%-1.7%
Q3 2024-4.3%-3.7%-12.8%
Q2 2024-3.2%-3.6%+3.7%
Q1 2024+1.8%-0.6%+18.4%
Q4 2023+2.6%+0.5%+11.9%
Q3 2023-3.7%-7.3%-2.6%
Q2 2023-0.2%+7.9%+3.6%
Q1 2023-5.2%+11.2%+14.9%
Q4 2022+7.4%+5.7%-0.1%
Q3 2022-13.3%-9.6%-1.1%
Q2 2022+12.2%+8.6%-5.6%
Q1 2022+16.4%+16.4%+10.5%
Q4 2021+15.6%+18.7%-2.7%
Q3 2021-10.9%-13.4%-14.9%
Q2 2021-17.3%-14.6%+11.5%
Q1 2021+33.2%+38.6%+132.0%
Q4 2020-3.6%-6.8%-29.9%
Q3 2020-16.7%-36.7%-0.8%
Q2 2020+13.6%+12.5%-19.2%
Q1 2020+13.4%+8.4%+3.6%
Q4 2019+6.2%+8.5%+19.7%
Q3 2019-5.6%-4.2%+10.4%
Q2 2019+36.8%+58.2%+55.8%
Q1 2019-25.8%-22.6%-32.9%
Q4 2018-5.5%-3.4%+4.9%
Q3 2018-8.8%-11.0%-12.6%
Q2 2018+13.6%+17.6%+11.0%
Q1 2018+10.5%+14.8%+20.5%
Q4 2017-14.4%-16.1%-18.2%
Q3 2017+9.9%+7.5%+5.1%
Q2 2017-8.8%-3.8%-4.7%
Q1 2017-15.3%-16.7%-12.5%
Q4 2016-6.9%-3.6%-18.2%
Q3 2016-12.2%
Q2 2016+14.0%
Q1 2016-4.8%
Q4 2015+3.1%
Q3 2015-1.4%
Q2 2015+15.6%
Q1 2015+6.6%
Q4 2012-4.6%
Q4 2014-4.6%
Q3 2014+3.4%
Q2 2014+3.4%
Q1 2014-2.7%
Q4 2013+0.8%
Q3 2013
Q2 2013
Q1 2013
Q3 2012
Q2 2012
Q1 2012
Q4 2011

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