Coty Inc. (COTY) SEC Filings & Earnings Calls

Performance Miss and No Bonus Payout

“The collective factor for Fiscal Year 2026 was zero because the minimum $ EBITDA threshold was not met. As a result, no APP awards were paid to the NEOs for Fiscal Year 2026.” · word for word

Controlled Company Governance Risk

“JAB Group owns approximately 54% (inclusive, pursuant to a proxy agreement, of all voting interests of Mr. Harf...)” · word for word

High Board Turnover

“Seven of the nine members of the Board have been appointed since the last annual meeting, bringing extensive experience and bolstering strategic and risk oversight.” · word for word

CFO departure; transition risk but mitigated by advisory role and non-compete.

“CFO transition; Mercier remains as advisor; non-compete for 12 months.”

Asset impairment risk

“In fiscal 2026, we incurred $362.8 of asset impairment charges of which $237.1 related to goodwill within the Consumer Beauty segment, and $50.6, $48.5, $22.5, $4.1 related to the CoverGirl , Sally Hansen , Max Factor , and Bourjois trademarks, respectively, within the Consumer Beauty Segment.” · word for word

Tariff and trade policy risk

“the tariffs imposed by the U.S. on goods and materials from China since 2019 have impacted materials we import for use in manufacturing or packaging in the U.S.” · word for word

Debt covenant and refinancing risk

“the ratings downgrade in July 2026 resulted in the reinstatement of certain covenants and collateral provisions for applicable outstanding senior secured notes.” · word for word

License termination risk

“in connection with the early termination of the Gucci Beauty license, we are evaluating our central organization, manufacturing and asset base, and certain market structures to adjust our scope and size following the transition period.” · word for word

Geopolitical disruption risk

“the war in the Middle East has impacted transportation costs as well as sales in the region, and these impacts may continue.” · word for word

Sell-out performance remains below market levels in both divisions, indicating weak consumer demand and market share loss.

“We are not content with our sell-out performance, which remains below market levels in both divisions.” · word for word

Gucci Beauty license exit will result in a step-down in sales and profit in FY28, creating a revenue gap.

“Gucci Beauty license exit will result in a step-down in sales and profit in FY28.” · word for word

Tariff costs and COGS absorption headwinds from lower shipment volumes are pressuring gross margin.

“Gross margin pressure from higher tariff costs and the resulting cost of goods sold (COGS) absorption headwinds from lower shipment volumes.” · word for word

Consumer Beauty segment remains loss-making on an adjusted basis, with widening operating losses.

“Consumer Beauty adjusted operating loss -$20.7M vs -$7.0M prior year.”

Loss of Gucci Beauty license removes a major brand from portfolio; revenue impact not quantified.

“License termination on June 30, 2027; Coty will no longer manufacture/commercialize Gucci Beauty products.”

Potential holdback of up to $30M on deferred consideration

“subject to a potential holdback of up to $30 million in certain specified circumstances” · word for word

Further Impairment Risk

“As the Consumer Beauty reporting unit was impaired, it has a 0% excess and as such, further material negative trends in its actual and expected business performance or an increase in the discount rate may result in further impairments.” · word for word

Tariff Exposure

“We currently estimate that our operating results will be impacted by approximately $32.0 in costs related to tariff increases, after mitigating actions, through the first quarter of fiscal 2027.” · word for word

Leverage and Debt Maturities

“Total debt, net of $3,169.4M as of March 31, 2026.”

Middle East disruption headwind

“Estimated 1.4% headwind from conflict in the Middle East”

Tariff impact on freight costs

“Impact from tariffs on freight costs” · word for word

Consumer Beauty impairment

“$362.8M impairment charge due to lower forecasted revenues and higher WACC”

Board turnover may indicate strategic shift or governance changes.

“Resignation of four directors and appointment of five new ones, with no disagreements cited.”

Tariff cost pressure on margins

“We currently estimate that our operating results will be impacted by approximately $33.0 in costs related to tariff increases, after mitigating actions, through the first quarter of fiscal 2027.” · word for word

Consumer demand weakness in color cosmetics and mass fragrance

“In the first half of fiscal 2026, net revenues from color cosmetics declined by a mid single-digit percentage versus the prior-year period.” · word for word

Gross margin pressure from multiple factors

“Cost of sales as a percentage of net revenues increased to 36.2% in the three months ended December 31, 2025 from 33.3% in the three months ended December 31, 2024, resulting in a gross margin decrease of approximately 290 basis points.” · word for word

Revenue decline and margin pressure

“LFL revenue down 3% in Q2, adjusted gross margin down 260bps”

Leadership transition creates uncertainty in strategy execution; interim CEO may signal pending permanent appointment.

“CEO departure and appointment of interim CEO; separation agreement with former CEO includes restrictive covenants.”

Material impairment indicates potential overvaluation of the joint venture investment; sale proceeds may be below carrying value.

“Non-cash impairment charge of ~$200M related to sale of Rainbow JVCo stake.”

Consumer Beauty segment underperformance and strategic review uncertainty.

“Building Performance Improvement Plan for Consumer Beauty While Progressing with Strategic Review.” · word for word

Tariff cost impact

“We currently estimate that our operating results will be impacted by approximately $35.0 in costs related to tariff increases, after mitigating actions, through the first quarter of fiscal 2027.” · word for word

Consumer demand weakness

“In the three months ended September 30, 2025, net revenues decreased 6%, or $94.3, to $1,577.2 from $1,671.5 in the three months ended September 30, 2024, reflecting a decrease in unit volume of 10%” · word for word

Foreign exchange volatility

“Fluctuations in foreign currency exchange rates can affect our results of operations.” · word for word