NYSE$COTY

Coty Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Results were in line with expectations, showing strong progress on gross margin and cash flow.

Coty Inc. reported financial results for the second quarter of fiscal year 2020, ended December 31, 2019. The results were in-line with expectations and underpinned by strong results in gross margin and free cash flow generation.

  • 2Q20 net revenue decreased 6.6%, with 1.4% organic LFL decline
  • LFL growth in Luxury and Professional Beauty was offset by a decline in Consumer Beauty
  • 2Q20 adjusted operating income of $325.0 million grew 1% YoY
  • Adjusted EPS of $0.27, rose 13% YoY, including a one-time tax benefit of $0.015 per share

Headline financials

Total Revenue

$2.35B

Previous: $2.51B-6.6%
EPS (adj)

$0.27

Previous: $0.24+12.5%
Gross Margin

63.4%

Previous: 61.9%+2.4%
Operating Margin

13.9%

No prior period
Free Cash Flow

$364M

Previous: $194M+87.5%
Net Debt

$7.21B

No prior period
Net Income

-$21.1M

Previous: -$961M+97.8%
Operating Income

$35.4M

Previous: -$805M+104.4%
Gross Profit

$1.49B

Previous: $1.55B-4.4%
Cash & Equivalents

$289M

Previous: $418M-30.8%
Total Assets

$17.4B

Previous: $21.3B-18.4%
Stock-Based Comp

$10.3M

Previous: $1.8M+472.2%

Revenue & EPS history

Coty · Revenue · Quarterly

$2.35B

Q2 2020-6.6%vs Q2 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Coty · $1.82B total across 2 segments · Q2 2020

  • Prestige
    $1.02B-0.1%
  • Consumer Beauty
    $800M-17.4%

Forward guidance

The FY20 outlook remains unchanged:

Tailwinds

  • Net Revenues: Stable to slightly lower LFL
  • Adjusted Operating Income: 5-10% YoY growth, at constant FX and portfolio scope, after increased working media investment behind our brands
  • Adjusted EPS: Mid-single digit growth
  • Free Cash Flow: Moderate improvement YoY

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 Q2 2020

Historical avgQ2 2020

+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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