Q4 2025 Coty Inc Earnings Call Transcript
Key Points
- Coty Inc (COTY) expects a return to growth in the second half of fiscal 2026, driven by strong innovations and easing retailer inventory reductions.
- The company is seeing healthy performance in the prestige and mass fragrance categories, with low to mid-single-digit growth.
- Coty Inc (COTY) anticipates its EBITDA for the full year to be above $1 billion, despite tariff headwinds.
- Lancaster, a key skincare brand, is experiencing significant growth in China, outperforming the market.
- The company is focusing on strategic revenue management and innovation to avoid entering into promotional battles, maintaining profitability.
- Coty Inc (COTY) is facing ongoing retailer inventory reductions, which are expected to continue impacting the first half of fiscal 2026.
- The company is experiencing a challenging promotional environment, particularly in the US, which could pressure margins.
- There is a noted innovation fatigue in the mass color cosmetics category, leading to a slowdown in market dynamics.
- Tariff impacts are a significant headwind, affecting gross margins and contributing to a challenging first half of fiscal 2026.
- The Asian travel retail market, particularly linked to Chinese consumption, remains weak, affecting overall performance.
Good morning and good afternoon, everyone. My name is Chelsea, and I'll be your conference operator today. At this time, I would like to welcome everyone to Coty's Fourth Quarter Fiscal 2025 Question-and-Answer conference call.
As a reminder, this conference call is being recorded today, August 21, 2025, at 8:00 AM Eastern Time or 2:00 PM Central European Time. Please note that on August 20 at approximately 4:30 PM Eastern Time or 10:30 PM. Central European time, Coty issued a press release and prepared remarks webcast, which can be found on its Investor Relations website.
On today's call are Sue Nabi, Chief Executive Officer; and Laurent Mercier, Chief Financial Officer. I would like to remind you that many of the comments today may contain forward-looking statements. Please refer to Coty's earnings release and the reports filed with the SEC where the company lists factors that could cause actual results to differ materially from these forward-looking statements.
In addition, except where noted, the discussion of Coty's financial results and Coty's expectations reflect certain
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