Key Takeaways Coty will return the Gucci Beauty license early in a deal worth about $400 million.COTY plans to use the proceeds to reduce debt and invest in its core prestige fragrance and beauty brands.Coty will manage Gucci Beauty through at least June 30, 2027, while both firms resolve pending litigation. Coty Inc. (COTY - Free Report) is making a strategic move to simplify its business and strengthen financial position. The beauty company has agreed to return the Gucci Beauty license to Kering about a year before the original contract was set to expire. In return, Coty will receive around $400 million, giving it more flexibility to reduce debt and invest in the core brands.
Under the agreement, Coty will continue managing Gucci Beauty through at least June 30, 2027. The company will receive $250 million upfront, with another $150 million due by Sept. 30, 2027, although up to $30 million of that amount depends on certain conditions being met. Coty will also sell enough Gucci Beauty inventory to Kering to support the transition and expects to incur about $30 million in cash taxes related to the transaction. Both companies have also agreed to resolve all pending litigation related to the Gucci Beauty license, removing a legal overhang ahead of the transition.
This move marks the end of a successful chapter for Coty, which has managed the Gucci Beauty business since 2016. Gucci Beauty sales have grown more than 60% since 2019, driven by popular fragrance lines such as Gucci Flora, Bloom, Guilty and Alchemist Garden. While the license will end earlier than originally planned, the agreement gives Coty greater financial flexibility to focus on its long-term priorities.
The transaction also aligns with Coty's broader strategic direction. Management has repeatedly emphasized that deleveraging remains its top capital allocation priority while focusing investments on fewer, higher-impact brands under the Coty.Curated strategy. The company is also working to simplify the business, reduce costs and improve cash flow. This agreement supports those goals by strengthening Coty's balance sheet and giving it greater flexibility to invest in the core prestige brands.
Coty’s Zacks Rank & Share Price PerformanceShares of this Zacks Rank #3 (Hold) company have gained 14.9% in the past month compared with the broader Consumer Staples sector, the industry and the S&P 500 index’s rise of 3.9%, 4.5% and 1.6%, respectively.
COTY Stock's Past Month Performance
Image Source: Zacks Investment Research
Is COTY a Value Play Stock?Coty currently trades at a forward 12-month P/E ratio of 6.31, below the industry and the sector’s average of 19.33 and 17.11, respectively. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector.
COTY P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Stocks to ConsiderThe Estee Lauder Companies Inc. (EL - Free Report) manufactures, markets and sells skin care, makeup, fragrance and hair care products worldwide. It currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Estee Lauder’s current fiscal-year sales and earnings calls for growth of 4.5% and 59.6%, respectively, from the year-ago reported numbers. EL delivered a trailing four-quarter average earnings surprise of 39.1%.
Five Below, Inc. (FIVE - Free Report) operates as a specialty value retailer in the United States and currently flaunts a Zacks Rank #1. FIVE delivered a trailing four-quarter earnings surprise of 70.1%, on average.
The Zacks Consensus Estimate for Five Below’s current fiscal-year sales and earnings calls for growth of 14.7% and 34.3%, respectively, from the year-ago reported numbers.
Dollar Tree, Inc. (DLTR - Free Report) is an operator of discount variety stores offering a broad assortment of everyday consumables and discretionary merchandise. DLTR currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter average earnings surprise of 32.1%.
The Zacks Consensus Estimate for Dollar Tree’s current fiscal-year earnings and sales indicates growth of 21.4% and 6.5%, respectively, from the year-ago actuals.
In connection with the deal, Kering expects to license out the Gucci beauty brand to L'Oréal starting in mid-2027, which will begin their 50-year exclusive licensing agreement ahead of schedule.
NEW YORK--(BUSINESS WIRE)--Regulatory News: Coty Inc. (NYSE: COTY) (Paris: COTY) (“Coty” or “the Company”) today announced that it has entered into an agreement to transition the Gucci Beauty license back to Kering for a consideration of approximately $400 million. Under the terms of the agreement, Coty will continue to operate the Gucci Beauty brand through at least June 30, 2027, ending the license approximately one year ahead of the original license term. Markus Strobel, Executive Chairman a.
Today, Coty Inc. (NYSE: COTY) (Paris: COTY) announced a set of organizational changes that advance its Coty.Curated strategy by bringing commercial decision-making closer to the center and enabling the company to move faster.
Executive Chairman and interim CEO Markus Strobel will take direct control of Prestige commercial operations, with Coty’s regional leaders reporting to him. The change brings leadership closer to the markets, speeds up decision-making, and sharpens accountability for sell-out and market share.
As part of these changes, Coty will integrate Prestige R&D and sustainability with supply chain into one simplified function under the interim leadership of Graeme Carter, Chief Supply Chain Officer. Bringing prestige innovation, sustainability, and supply chain together under one leader streamlines how the company develops and delivers behind its core businesses. Gordon von Bretten, President of Consumer Beauty, will continue to drive an already integrated model in Consumer Beauty.
Caroline Andreotti, Chief Commercial Officer Prestige, will leave Coty at the end of September after three years in the role and almost two decades with the company. She shaped Coty’s global commercial strategy, its relationships with key customers and partners, and its leadership in prestige.
Dr. Shimei Fan, Chief Scientific and Sustainability Officer, will leave Coty at the end of August. She led the company’s R&D organization and sustainability agenda, helped launch key innovations, and oversaw significant progress including multiple ESG ratings upgrades and the first approval of Coty’s science-based carbon reduction targets by the SBTi.
Markus Strobel, Executive Chairman and interim CEO, said: “Coty.Curated is about clarity and focus, and a simpler operating model helps us deliver on that. It positions us to keep building behind our core brands and to support our teams as the business moves forward. I want to thank Caroline and Shimei for their leadership and their many years of contribution to Coty, and wish them every success for their future endeavors.”
People and Purpose leadership transition
Priya Srinivasan, Chief People and Purpose Officer, has decided to step down for personal reasons and will leave Coty in August. She led the global people function, including leadership development and engagement, and played an important role in advancing Coty’s talent agenda.
Séverine Charbon will join Coty as Chief People and Purpose Officer effective September 1. She brings more than 25 years of international experience in talent strategy and organizational transformation, most recently as Chief Talent Officer International at Publicis Groupe.
Strobel added: “Priya has been a thoughtful and trusted leader, and a real champion of our people and culture. She has strengthened how we develop talent, deepened employee engagement, and helped make Coty a place where people can do their best work. We are grateful for everything she has given to Coty and wish her the very best in the future. We now look forward to Séverine joining Coty at this important time and continuing to build on the strong foundations in place.”
ABOUT COTY INC.
Founded in Paris in 1904, Coty is one of the world’s largest beauty companies, with a portfolio of beloved brands across fragrance, color cosmetics, and skin and body care. Coty serves consumers around the world, selling prestige and mass‑market products in over 120 countries and territories. Together with its brands, Coty empowers people to express the beauty of their individuality – and is committed to transforming the beauty industry to become more sustainable and inclusive through its Beauty That Lasts strategy.
Learn more at coty.com or follow us on LinkedIn and Instagram.
NEW YORK, May 20, 2026 (GLOBE NEWSWIRE) -- Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Coty Inc. (NYSE: COTY) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Coty securities between November 5, 2025 and February 4, 2026, both dates inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: bgandg.com/COTY.
Coty Case Details
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose that:
(1) Defendants issued overwhelmingly positive statements regarding Coty’s growth and profitability prospects for fiscal year 2026;
(2) Coty’s growth in the beauty market was slowing, including underperformance in its Consumer Beauty segment;
(3) The Company’s margins were being pressured by increased marketing expenditures;
(4) Growth in Coty’s Prestige fragrance segment was decelerating; and
(5) As a result, Defendants’ statements about Coty’s business, operations, and prospects were materially false and misleading at all relevant times.
What's Next for Coty Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm’s site: bgandg.com/COTY. or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Coty you have until May 22, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to Coty Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys’ fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for Coty Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
Follow us for updates on LinkedIn, X, Facebook, or Instagram.
Contact Info
Peretz Bronstein, Esq. or Nathan Miller
Bronstein, Gewirtz & Grossman, LLC
917-590-0911 | [email protected]
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Prior results do not guarantee similar outcomes.
LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz reminds investors of the upcoming May 22, 2026 deadline to participate as a lead plaintiff in the securities fraud class action lawsuit filed on behalf of investors who acquired Coty Inc. (“Coty” or the “Company”) (NYSE: COTY) common stock between May 7, 2025 and February 4, 2026, inclusive (the “Class Period”).
IF YOU ARE AN INVESTOR WHO LOST MONEY ON COTY INC. (COTY), CLICK HERE TO PARTICIPATE IN THE SECURITIES FRAUD LAWSUIT.
What Happened?
On February 5, 2026, Coty released its second quarter fiscal 2026 financial results, revealing results below market expectations, including that net revenue decreased 6% on a like-for-like basis, reported gross margins decreased 200 basis points, and adjusted operating income declined 19%. The Company also withdrew its 2026 guidance for EBITDA and lowered its near-term outlook, stating “Coty anticipates Q3 gross margins to decline 200 to 300 basis points” and “approximately breakeven EPS.”
In the Company’s earnings call, recently appointed interim CEO, Markus Strobel, noted “we have not been delivering at the level we should” and the Company would need to invest in “disciplined execution, operational effectiveness and sufficient multiyear marketing support.” The Company’s CFO, Laurent Mercier also noted “the main headwind is from Consumer Beauty.”
On this news, Coty’s stock price fell $0.49, or 15.56%, to close at $2.66 per share on February 6, 2026, thereby injuring investors.
What Is The Lawsuit About?
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Coty’s Consumer Beauty segment was underperforming; (2) margins were compressed by increased marketing investments; (3) there was slowing growth in the Prestige fragrance marker; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased or otherwise acquired Coty securities between May 7, 2025 and February 4, 2026, the deadline to seek appointment as the lead plaintiff in the securities fraud class action is May 22, 2026.
Contact Us To Participate or Learn More:
If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact us:
Frank R. Cruz
The Law Offices of Frank R. Cruz,
2121 Avenue of the Stars, Suite 800,
Century City, California 90067
Email us at: [email protected]
Call us at: 310-914-5007
Visit our website at www.frankcruzlaw.com
Follow us for updates on Twitter: twitter.com/FRC_LAW
If you inquire by email, please include your mailing address, telephone number, and number of shares purchased.
To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
New York, New York--(Newsfile Corp. - May 20, 2026) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Coty Inc. (NYSE: COTY) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Coty securities between November 5, 2025 and February 4, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/COTY.
Coty Case Details
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose that:
Defendants issued overwhelmingly positive statements regarding Coty's growth and profitability prospects for fiscal year 2026; Coty's growth in the beauty market was slowing, including underperformance in its Consumer Beauty segment; The Company's margins were being pressured by increased marketing expenditures; Growth in Coty's Prestige fragrance segment was decelerating; and As a result, Defendants' statements about Coty's business, operations, and prospects were materially false and misleading at all relevant times.What's Next for Coty Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/COTY, or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Coty you have until May 22, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to Coty Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for Coty Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
Follow us for updates on LinkedIn, X, Facebook, or Instagram.
Attorney advertising.
Prior results do not guarantee similar outcomes.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/295229
Source: Bronstein, Gewirtz & Grossman, LLC
Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.
San Francisco, California--(Newsfile Corp. - May 20, 2026) - National shareholder rights law firm Hagens Berman alerts Coty Inc. (NYSE: COTY) investors that a new securities class action lawsuit has been filed in the U.S. District Court for the Southern District of New York.
The newly filed litigation significantly expands the timeframe for recovery. The action is brought on behalf of all investors who purchased or otherwise acquired Coty common stock between May 7, 2025 and February 4, 2026, inclusive (the "Expanded Class Period").
The firm urges investors in Coty who suffered significant losses to submit your losses now. The firm also encourages witnesses who may be able to assist in the investigation to contact its attorneys.
View our latest video summary of the allegations:
Cannot view this video? Visit:
https://www.youtube.com/watch?v=jQoWASUHcgI
Lead Plaintiff Deadline: May 22, 2026
Expand Class Period: May 7, 2025 - Feb. 4, 2026
Visit: www.hbsslaw.com/investor-fraud/coty
Contact the Firm Now: [email protected]
844-916-0895
Coty Inc. (COTY) Securities Class Action: The Expanded Class Period and Core Allegations
While the initial complaint filed against Coty focused on statements made in November 2025, the newly expanded litigation alleges that Coty's campaign of misrepresentation began earlier, on May 7, 2025.
According to the lawsuit, on May 6, 2025, during post-market hours, Coty and its senior executives disseminated overwhelmingly positive material representations concerning the company's growth potential and operational health heading into fiscal year 2026. Management repeatedly assured the market that it possessed a strong innovation pipeline, predictable retail trends, and the operational discipline necessary to steadily improve fragrance and beauty sales.
In reality, the complaint alleges that throughout the Expanded Class Period, severe, structural headwinds were concealed from the investing public. Specifically, it is alleged that Coty failed to disclose that:
The Consumer Beauty market was severely underperforming and lagging behind competitors;Profit margins were being aggressively compressed by escalating, unsustainable marketing investments; andPrestige fragrance growth was experiencing a sharp, undisclosed deceleration.The Truth Emerges
Investors began to learn the true state of Coty's business through a series of sudden operational updates. On December 12, 2025, Coty abruptly announced the departure of its CEO, Sue Y. Nabi, without an adequate operational explanation, causing an immediate drop in share value.
The full extent of the operational collapse was laid bare after the market closed on February 4 and 5, 2026, when Coty announced its Q2 2026 financial results. The company revealed that operating income in its Consumer Beauty segment had plummeted by over 70% year-over-year, while Prestige operating income dropped over 18%. Compounding the shock, Coty completely withdrew its full-year fiscal 2026 EBITDA and free cash flow guidance, while acknowledging a severe lack of "operational discipline."
On this devastating news, the price of Coty common stock collapsed, falling roughly 22% from a closing price of $3.43 per share on February 4, 2026, to $2.66 per share on February 6, 2026, erasing hundreds of millions of dollars in shareholder value.
What This Means for Investors
The filing of the expanded complaint does not alter the upcoming May 22, 2026 deadline to seek appointment as Lead Plaintiff.
If you invested in Coty during the Expanded Class Period and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »
If you'd like more information and answers to frequently asked questions about the Coty case and the firm's investigation, read more »
"We're investigating the extended period of alleged misrepresentations which is alleged to have harmed investors who bought into Coty's growth narrative as early as spring of last year. " said Reed Kathrein, the Hagens Berman partner leading the firm's investigation of the pending claims.
Whistleblowers: Persons with non-public information regarding Coty should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
# # #
About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/298302
Source: Hagens Berman Sobol Shapiro LLP
Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.
, /PRNewswire/ -- National shareholder rights law firm Hagens Berman alerts Coty Inc. (NYSE: COTY) investors that a new securities class action lawsuit has been filed in the U.S. District Court for the Southern District of New York.
The newly filed litigation significantly expands the timeframe for recovery. The action is brought on behalf of all investors who purchased or otherwise acquired Coty common stock between May 7, 2025 and February 4, 2026, inclusive (the "Expanded Class Period").
The firm urges investors in Coty who suffered significant losses to submit your losses now. The firm also encourages witnesses who may be able to assist in the investigation to contact its attorneys.
View our latest video summary of the allegations: youtu.be/jQoWASUHcgI
Lead Plaintiff Deadline: May 22, 2026
Expand Class Period: May 7, 2025 – Feb. 4, 2026
Visit: www.hbsslaw.com/investor-fraud/coty
Contact the Firm Now: [email protected]
844-916-0895
Coty Inc. (COTY) Securities Class Action: The Expanded Class Period and Core Allegations
While the initial complaint filed against Coty focused on statements made in November 2025, the newly expanded litigation alleges that Coty's campaign of misrepresentation began earlier, on May 7, 2025.
According to the lawsuit, on May 6, 2025, during post-market hours, Coty and its senior executives disseminated overwhelmingly positive material representations concerning the company's growth potential and operational health heading into fiscal year 2026. Management repeatedly assured the market that it possessed a strong innovation pipeline, predictable retail trends, and the operational discipline necessary to steadily improve fragrance and beauty sales.
In reality, the complaint alleges that throughout the Expanded Class Period, severe, structural headwinds were concealed from the investing public. Specifically, it is alleged that Coty failed to disclose that:
The Consumer Beauty market was severely underperforming and lagging behind competitors; Profit margins were being aggressively compressed by escalating, unsustainable marketing investments; and Prestige fragrance growth was experiencing a sharp, undisclosed deceleration. The Truth Emerges
Investors began to learn the true state of Coty's business through a series of sudden operational updates. On December 12, 2025, Coty abruptly announced the departure of its CEO, Sue Y. Nabi, without an adequate operational explanation, causing an immediate drop in share value.
The full extent of the operational collapse was laid bare after the market closed on February 4 and 5, 2026, when Coty announced its Q2 2026 financial results. The company revealed that operating income in its Consumer Beauty segment had plummeted by over 70% year-over-year, while Prestige operating income dropped over 18%. Compounding the shock, Coty completely withdrew its full-year fiscal 2026 EBITDA and free cash flow guidance, while acknowledging a severe lack of "operational discipline."
On this devastating news, the price of Coty common stock collapsed, falling roughly 22% from a closing price of $3.43 per share on February 4, 2026, to $2.66 per share on February 6, 2026, erasing hundreds of millions of dollars in shareholder value.
What This Means for Investors
The filing of the expanded complaint does not alter the upcoming May 22, 2026 deadline to seek appointment as Lead Plaintiff.
If you invested in Coty during the Expanded Class Period and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »
If you'd like more information and answers to frequently asked questions about the Coty case and the firm's investigation, read more »
"We're investigating the extended period of alleged misrepresentations which is alleged to have harmed investors who bought into Coty's growth narrative as early as spring of last year." said Reed Kathrein, the Hagens Berman partner leading the firm's investigation of the pending claims.
Whistleblowers: Persons with non-public information regarding Coty should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses In Coty To Contact Him Directly To Discuss Their Options
If you purchased or acquired securities in Coty between November 5, 2025 and February 4, 2026 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
[You may also click here for additional information]
, /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Coty Inc. ("Coty" or the "Company") (NYSE: COTY) and reminds investors of the May 22, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
James (Josh) Wilson, Faruqi & Faruqi Senior Partner (PRNewsfoto/Faruqi & Faruqi, LLP) As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose the true state of Coty's slowing growth in the beauty market, notably, the Consumer Beauty market was underperforming, margins were compressed by increased marketing investments and there was slowing growth in its Prestige fragrance segment. Such statements absent these material facts caused Plaintiff and other shareholders to purchase Coty's securities at artificially inflated prices.
After the market closed on February 4 and 5, 2026, Coty announced its financial results for the second quarter fiscal year 2026, unveiling disappointing earnings results with worsening performance in the Consumer Beauty segment. The Company also noted the recent transition of its Chief Executive Officer in conjunction with the below-expectation results. Coty further withdrew its fiscal year 2026 guidance for EBITDA and revised the Company's near-term outlook downward. Coty attributed its results and lowered guidance to a combination of macroeconomic factors including rising costs and uncertain consumer demand and lack of "operational discipline" in both Prestige and Consumer Beauty segments.
Investors and analysts reacted immediately to Coty's revelation. The price of Coty's common stock declined from a closing market price of $3.43 per share on February 4, 2026, to $2.66 per share on February 6, 2026, a decline of about 22%.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Coty's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the Coty class action, go to www.faruqilaw.com/COTY or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
Follow us for updates on LinkedIn, on X, or on Facebook.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
LOS ANGELES, May 21, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against Coty Inc. (“Coty” or “the Company”) (NYSE: COTY) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.
Investors who purchased the Company’s securities between November 5, 2025 and February 4, 2026, inclusive (the “Class Period”), are encouraged to contact the firm before May 22, 2026.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
According to the Complaint, the Company made false and misleading statements to the market. Coty made overwhelmingly positive statements about its growth prospects for fiscal year 2026. Despite its promises, the Company’s growth was slowing and its Consumer Beauty segment was underperforming. The Company’s increasing marketing spend impacts its margins. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Coty, investors suffered damages.
Join the case to recover your losses.
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.,
www.schallfirm.com
Office: 310-301-3335 [email protected]
, /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Coty Inc. ("Coty" or the "Company") (NYSE: COTY) and certain of its former officers. The class action, filed in the United States District Court for the Southern District of New York, and docketed under 26-cv-04034, is on behalf of all investors who purchased or otherwise acquired Coty common stock between May 7, 2025, to February 4, 2026, inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violations of the federal securities laws (the "Class").
If you are an investor who purchased or otherwise acquired Coty securities during the Class Period, you have until May 22, 2026, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Danielle Peyton at [email protected] or 646-581-9980 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
[Click here for information about joining the class action]
Coty, together with its subsidiaries, manufactures, markets, distributes, and sells branded beauty products worldwide. It operates through two segments: Prestige and Consumer Beauty. The Company provides fragrance, color cosmetics, and skin and body care products through prestige retailers, including perfumeries, department stores, e-retailers, direct-to-consumer websites, and duty-free shops.
Defendants provided investors with material information concerning Coty's growth potential for the fiscal year 2026. Defendants' statements included, among other things, confidence in the Company's ability to drive growth and profitability in the fiscal year 2026 by improving fragrance sales, building a strong innovation pipeline and making operational improvements.
Defendants provided these overwhelmingly positive statements to investors while, at the same time, disseminating materially false and misleading statements and/or concealing material adverse facts concerning the true state of Coty's slowing growth in the beauty market, notably, the Consumer Beauty market was underperforming, margins were compressed by increased marketing investments and there was slowing growth in its Prestige fragrance segment. Such statements absent these material facts caused Plaintiff and other shareholders to purchase Coty's securities at artificially inflated prices.
After the market closed on February 4 and 5, 2026, Coty announced its financial results for the second quarter of fiscal year 2026, unveiling disappointing earnings results with worsening performance in the Consumer Beauty segment. The Company also noted the recent transition of its Chief Executive Officer in conjunction with the below-expectation results. Coty further withdrew its fiscal year 2026 guidance for EBITDA and revised the Company's near-term outlook downward. Coty attributed its results and lowered guidance to a combination of macroeconomic factors including rising costs and uncertain consumer demand and lack of "operational discipline" in both Prestige and Consumer Beauty segments.
Investors and analysts reacted immediately to Coty's revelation. The price of Coty's common stock declined from a closing market price of $3.43 per share on February 4, 2026, to $2.66 per share on February 6, 2026, a decline of about 22%.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
Bragar Eagel & Squire, P.C. Litigation Partner Brandon Walker Encourages Investors Who Suffered Losses In Coty To Contact Him Directly To Discuss Their Options
If you purchased or acquired Coty common stock between November 5, 2025, to February 4, 2026 and would like to discuss your legal rights, call Bragar Eagel & Squire partner Brandon Walker or Melissa Fortunato directly at (212) 355-4648.
Click here to participate in the action.
NEW YORK, May 21, 2026 (GLOBE NEWSWIRE) --
What’s Happening?
Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, announces that a class action lawsuit has been filed against Coty, Inc. (“Coty” or the “Company”) (NYSE:COTY) in the United States District Court for the Southern District of New York on behalf of all persons and entities who purchased or otherwise acquired Coty common stock between November 5, 2025, to February 4, 2026, both dates inclusive (the “Class Period”).Investors have until May 22, 2026 to apply to the Court to be appointed as lead plaintiff in the lawsuit. What are the Allegation Details?
According to the lawsuit, throughout the Class Period, defendants made false and/or misleading statements and/or concealed material adverse facts concerning the true state of Coty's slowing growth in the beauty market, notably, the Consumer Beauty market was underperforming, margins were compressed by increased marketing investments and there was slowing growth in its Prestige fragrance segment. When the true details entered the market, the lawsuit claims that investors suffered damages.
What are the Next Steps?
If you purchased or otherwise acquired Coty shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at [email protected], telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, South Carolina, and California. The firm represents individual and institutional investors in securities, derivative, and commercial litigation as well as individuals in consumer protection and data privacy litigation. The firm has a nationwide practice and routinely handles cases in both federal and state courts. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Follow us for updates on LinkedIn and Facebook, and keep up with other news by following Brandon Walker, Esq. on LinkedIn.
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses In Coty To Contact Him Directly To Discuss Their Options
If you purchased or acquired securities in Coty between November 5, 2025 and February 4, 2026 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
[You may also click here for additional information]
NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Coty Inc. (“Coty” or the “Company”) (NYSE: COTY) and reminds investors of the May 22, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
The complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements
Share Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose the true state of Coty’s slowing growth in the beauty market, notably, the Consumer Beauty market was underperforming, margins were compressed by increased marketing investments and there was slowing growth in its Prestige fragrance segment. Such statements absent these material facts caused Plaintiff and other shareholders to purchase Coty’s securities at artificially inflated prices.
After the market closed on February 4 and 5, 2026, Coty announced its financial results for the second quarter fiscal year 2026, unveiling disappointing earnings results with worsening performance in the Consumer Beauty segment. The Company also noted the recent transition of its Chief Executive Officer in conjunction with the below-expectation results. Coty further withdrew its fiscal year 2026 guidance for EBITDA and revised the Company’s near-term outlook downward. Coty attributed its results and lowered guidance to a combination of macroeconomic factors including rising costs and uncertain consumer demand and lack of “operational discipline” in both Prestige and Consumer Beauty segments.
Investors and analysts reacted immediately to Coty’s revelation. The price of Coty’s common stock declined from a closing market price of $3.43 per share on February 4, 2026, to $2.66 per share on February 6, 2026, a decline of about 22%.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Coty’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the Coty class action, go to www.faruqilaw.com/COTY or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
SAN FRANCISCO, May 22, 2026 (GLOBE NEWSWIRE) -- National shareholder rights law firm Hagens Berman alerts Coty Inc. (NYSE: COTY) investors that a new securities class action lawsuit has been filed in the U.S. District Court for the Southern District of New York.
The newly filed litigation significantly expands the timeframe for recovery. The action is brought on behalf of all investors who purchased or otherwise acquired Coty common stock between May 7, 2025 and February 4, 2026, inclusive (the “Expanded Class Period”).
The firm urges investors in Coty who suffered significant losses to submit your losses now. The firm also encourages witnesses who may be able to assist in the investigation to contact its attorneys.
View our latest video summary of the allegations: youtu.be/jQoWASUHcgI
Coty Inc. (COTY) Securities Class Action: The Expanded Class Period and Core Allegations
While the initial complaint filed against Coty focused on statements made in November 2025, the newly expanded litigation alleges that Coty’s campaign of misrepresentation began earlier, on May 7, 2025.
According to the lawsuit, on May 6, 2025, during post-market hours, Coty and its senior executives disseminated overwhelmingly positive material representations concerning the company's growth potential and operational health heading into fiscal year 2026. Management repeatedly assured the market that it possessed a strong innovation pipeline, predictable retail trends, and the operational discipline necessary to steadily improve fragrance and beauty sales.
In reality, the complaint alleges that throughout the Expanded Class Period, severe, structural headwinds were concealed from the investing public. Specifically, it is alleged that Coty failed to disclose that:
The Consumer Beauty market was severely underperforming and lagging behind competitors;Profit margins were being aggressively compressed by escalating, unsustainable marketing investments; andPrestige fragrance growth was experiencing a sharp, undisclosed deceleration. The Truth Emerges
Investors began to learn the true state of Coty’s business through a series of sudden operational updates. On December 12, 2025, Coty abruptly announced the departure of its CEO, Sue Y. Nabi, without an adequate operational explanation, causing an immediate drop in share value.
The full extent of the operational collapse was laid bare after the market closed on February 4 and 5, 2026, when Coty announced its Q2 2026 financial results. The company revealed that operating income in its Consumer Beauty segment had plummeted by over 70% year-over-year, while Prestige operating income dropped over 18%. Compounding the shock, Coty completely withdrew its full-year fiscal 2026 EBITDA and free cash flow guidance, while acknowledging a severe lack of "operational discipline."
On this devastating news, the price of Coty common stock collapsed, falling roughly 22% from a closing price of $3.43 per share on February 4, 2026, to $2.66 per share on February 6, 2026, erasing hundreds of millions of dollars in shareholder value.
What This Means for Investors
The filing of the expanded complaint does not alter the upcoming May 22, 2026 deadline to seek appointment as Lead Plaintiff.
If you invested in Coty during the Expanded Class Period and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the Coty case and the firm’s investigation, read more »
“We’re investigating the extended period of alleged misrepresentations which is alleged to have harmed investors who bought into Coty’s growth narrative as early as spring of last year. ” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation of the pending claims.
Whistleblowers: Persons with non-public information regarding Coty should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of common stock of Coty Inc. (NYSE: COTY) between November 5, 2025 and February 4, 2026, inclusive (the “Class Period”), of the important May 22, 2026 lead plaintiff deadline.
SO WHAT: If you purchased Coty common stock during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.
WHAT TO DO NEXT: To join the Coty class action, go to https://rosenlegal.com/submit-form/?case_id=47083 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than May 22, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually handle securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved, at that time, the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs’ Bar. Many of the firm’s attorneys have been recognized by Lawdragon and Super Lawyers.
DETAILS OF THE CASE: According to the lawsuit, throughout the Class Period, defendants made false and/or misleading statements and/or concealed material adverse facts concerning the true state of Coty’s slowing growth in the beauty market, notably, the Consumer Beauty market was underperforming, margins were compressed by increased marketing investments and there was slowing growth in its Prestige fragrance segment. When the true details entered the market, the lawsuit claims that investors suffered damages.
To join the Coty class action, go to https://rosenlegal.com/submit-form/?case_id=47083 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.
Attorney Advertising. Prior results do not guarantee a similar outcome.
-------------------------------
Contact Information:
Laurence Rosen, Esq.
Phillip Kim, Esq.
The Rosen Law Firm, P.A.
275 Madison Avenue, 40th Floor
New York, NY 10016
Tel: (212) 686-1060
Toll Free: (866) 767-3653
Fax: (212) 202-3827 [email protected]
www.rosenlegal.com
, /PRNewswire/ -- Glancy Prongay Wolke & Rotter LLP announces that investors with losses have opportunity to lead the securities fraud class action lawsuit against Coty Inc. ("Coty" or the "Company") (NYSE: COTY).
IF YOU SUFFERED A LOSS ON YOUR COTY INVESTMENTS, CLICK HERE BEFORE MAY 22, 2026 (LEAD PLAINTIFF DEADLINE) TO PARTICIPATE IN THE SECURITIES FRAUD LAWSUIT
What Is The Lawsuit About?
The complaint filed alleges that, between May 7, 2025 and February 4, 2026, Defendants failed to disclose to investors that: (1) Coty's Consumer Beauty segment was underperforming; (3) margins were compressed by increased marketing investments; (3) there was slowing growth in the Prestige fragrance marker; and (4) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Contact Us To Participate or Learn More:
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us.
Charles Linehan, Esq.,
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100,
Los Angeles California 90067
Email: [email protected]
Telephone: 310-201-9150 (Toll-Free: 888-773-9224)
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.
If you inquire by email, please include your mailing address, telephone number and number of shares purchased.
To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contact Us:
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100,
Los Angeles, CA 90067
New York, New York--(Newsfile Corp. - May 22, 2026) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Coty Inc. (NYSE: COTY) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Coty securities between November 5, 2025 and February 4, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/COTY.
Coty Case Details
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose that:
Defendants issued overwhelmingly positive statements regarding Coty's growth and profitability prospects for fiscal year 2026; Coty's growth in the beauty market was slowing, including underperformance in its Consumer Beauty segment; The Company's margins were being pressured by increased marketing expenditures; Growth in Coty's Prestige fragrance segment was decelerating; and As a result, Defendants' statements about Coty's business, operations, and prospects were materially false and misleading at all relevant times.What's Next for Coty Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/COTY, or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Coty you have until May 22, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to Coty Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for Coty Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
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Prior results do not guarantee similar outcomes.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/295230
Source: Bronstein, Gewirtz & Grossman, LLC
Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.
NEW YORK--(BUSINESS WIRE)--Rosen Law Firm, a global investor rights law firm, reminds investors about a class action lawsuit on behalf of purchasers of common stock of Coty Inc. (NYSE: COTY) between November 5, 2025 and February 4, 2026. Coty describes itself as a company that “together with its subsidiaries, manufactures, markets, distributes, and sells branded beauty products worldwide.”
For more information, submit a form, email attorney Phillip Kim, or give us a call at 866-767-3653.
The Allegations: Rosen Law Firm is Investigating the Allegations that Coty Inc. (NYSE: COTY) Misled Investors Regarding its Business Operations.
According to the lawsuit, throughout the Class Period, defendants made false and/or misleading statements and/or concealed material adverse facts concerning the true state of Coty’s slowing growth in the beauty market, notably, the Consumer Beauty market was underperforming, margins were compressed by increased marketing investments and there was slowing growth in its Prestige fragrance segment. When the true details entered the market, the lawsuit claims that investors suffered damages.
What Now: You may be eligible to participate in the class action against Coty Inc. Shareholders who want to serve as lead plaintiff for the class must file their motions with the court by May 22, 2026. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Rosen Law Firm: Some law firms issuing releases about this matter do not actually litigate securities class actions. Rosen Law Firm does. Rosen Law Firm is a recognized leader in shareholder rights litigation, dedicated to helping shareholders recover losses, improving corporate governance structures, and holding company executives accountable for their wrongdoing. Since its inception, Rosen Law Firm has obtained over $1 billion for shareholders.
Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.
Attorney Advertising. Prior results do not guarantee a similar outcome.
Rosen Law Firm, a global investor rights law firm, reminds investors about a class action lawsuit on behalf of purchasers of common stock of Coty Inc. (NYSE: COTY) between November 5, 2025 and February 4, 2026. Coty describes itself as a company that “together with its subsidiaries, manufactures, markets, distributes, and sells branded beauty products worldwide.”
For more information, submit a form, email attorney Phillip Kim, or give us a call at 866-767-3653.
The Allegations: Rosen Law Firm is Investigating the Allegations that Coty Inc. (NYSE: COTY) Misled Investors Regarding its Business Operations.
According to the lawsuit, throughout the Class Period, defendants made false and/or misleading statements and/or concealed material adverse facts concerning the true state of Coty’s slowing growth in the beauty market, notably, the Consumer Beauty market was underperforming, margins were compressed by increased marketing investments and there was slowing growth in its Prestige fragrance segment. When the true details entered the market, the lawsuit claims that investors suffered damages.
What Now: You may be eligible to participate in the class action against Coty Inc. Shareholders who want to serve as lead plaintiff for the class must file their motions with the court by May 22, 2026. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Rosen Law Firm: Some law firms issuing releases about this matter do not actually litigate securities class actions. Rosen Law Firm does. Rosen Law Firm is a recognized leader in shareholder rights litigation, dedicated to helping shareholders recover losses, improving corporate governance structures, and holding company executives accountable for their wrongdoing. Since its inception, Rosen Law Firm has obtained over $1 billion for shareholders.
Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.
Attorney Advertising. Prior results do not guarantee a similar outcome.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260522771626/en/
, /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of Coty Inc. (NYSE: COTY).
Shareholders who purchased shares of COTY during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery.
CLASS PERIOD: November 5, 2025 to February 4, 2026
ALLEGATIONS: According to the complaint, defendants provided overwhelmingly positive statements to investors while, at the same time, disseminating materially false and misleading statements and/or concealing material adverse facts concerning the true state of Coty's slowing growth in the beauty market, notably, the Consumer Beauty market was underperforming, margins were compressed by increased marketing investments and there was slowing growth in its Prestige fragrance segment. After the market closed on February 4 and 5, 2026, Coty announced its financial results for the second quarter fiscal year 2026, unveiling disappointing earnings results with worsening performance in the Consumer Beauty segment. The Company also noted the recent transition of its Chief Executive Officer in conjunction with the below-expectation results. Coty further withdrew its fiscal year 2026 guidance for EBITDA and revised the Company's near-term outlook downward. Coty attributed its results and lowered guidance to a combination of macroeconomic factors including rising costs and uncertain consumer demand and lack of "operational discipline" in both Prestige and Consumer Beauty segments. Following this news, the price of Coty's common stock declined from a closing market price of $3.43 per share on February 4, 2026, to $2.66 per share on February 6, 2026, a decline of about 22%.
DEADLINE: May 22, 2026 Shareholders should not delay in registering for this class action. Register your information here: https://securitiesclasslaw.com/securities/coty-inc-loss-submission-form-3/?id=186860&from=4
NEXT STEPS FOR SHAREHOLDERS: Once you register as a shareholder who purchased shares of COTY during the timeframe listed above, you will be enrolled in a portfolio monitoring software to provide you with status updates throughout the lifecycle of the case. The deadline to seek to be a lead plaintiff is May 22, 2026. There is no cost or obligation to you to participate in this case.
WHY GROSS LAW FIRM? The Gross Law Firm is a nationally recognized class action law firm, and our mission is to protect the rights of all investors who have suffered as a result of deceit, fraud, and illegal business practices. The Gross Law Firm is committed to ensuring that companies adhere to responsible business practices and engage in good corporate citizenship. The firm seeks recovery on behalf of investors who incurred losses when false and/or misleading statements or the omission of material information by a company lead to artificial inflation of the company's stock. Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
The Gross Law Firm
15 West 38th Street, 12th floor
New York, NY, 10018
Email: [email protected]
Phone: (646) 453-8903
It has been about a month since the last earnings report for Coty (COTY - Free Report) . Shares have lost about 28.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Coty due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
Coty Loss Widens in Q3, Consumer Beauty Revenues Decline 4%Coty posted weaker-than-expected third-quarter fiscal 2026 results. The company reported an adjusted loss of three cents per share against the Zacks Consensus Estimate of breakeven earnings. Results also compared unfavorably with adjusted earnings of a penny in the year-ago quarter.
Net revenues were $1,281.6 million, down 1% year over year, and slightly below the Zacks Consensus Estimate of $1,285 million. The metric included a 6% gain from foreign exchange. On a like-for-like (LFL) basis, revenues declined 7%, reflecting disruptions tied to the Middle East conflict.
Gross margin was 61.8%, down 230 basis points (bps) year over year, as supply-chain cost under-absorption from lower sales, higher excess and obsolescence in Consumer Beauty, and tariff-related freight costs weighed on results. Adjusted gross margin was 61.8%, down 250 bps.
Adjusted operating income plunged 51% to $72.4 million on soft sales and gross profit, with the adjusted operating margin contracting 580 basis points to 5.6%. Adjusted EBITDA declined 38% to $127 million, with adjusted EBITDA margin down 580 basis points to 9.9%.
Coty’s Segment-Wise PerformancePrestige revenues were $830.9 million, essentially flat on a reported basis year over year, but declined 5% on a LFL basis, reflecting slower category growth. The quarter included an anticipated 2% headwind from Middle East-related conflict. The company’s Prestige strategy has been anchored by major brands like Burberry, Hugo Boss, Calvin Klein, Marc Jacobs, Chloe and Kylie Cosmetics. Year to date through the fiscal year, major launches continue to perform well, including BOSS Bottled Beyond and Cosmic by Kylie Jenner Intense. The adjusted operating margin in the segment decreased 420 basis points to 14.9%.
Consumer Beauty revenues came in at $450.7 million, down 4% year over year on a reported basis and down 10% on a LFL basis, including a 1%-headwind from the conflict in the Middle East. The segment recorded an adjusted operating loss of $51.3 million, wider than a loss of $10.9 million in the year-ago quarter. However, the company is seeing encouraging signs in Consumer Beauty, with brands like CoverGirl and Sally Hansen gradually closing the gap with the broader category in terms of retail sales, while continuing to outperform the category when measured by unit sales.
COTY’s Regional HighlightsAmericas: By geography, the Americas posted revenues of $510.4 million, down 4% year over year on a reported basis and down 6% on a LFL basis, primarily reflecting lower sales in the US and Canada. This was somewhat offset by increased sales in the Americas Travel Retail channel.
EMEA: Revenues were $597.6 million, down 2% reported and 11% on a LFL basis, due to weaker performance in the Middle East, France, and Central and Eastern Europe.
Asia Pacific: The segment was the standout, with revenues rising 9% to $173.6 million on a reported basis and 5% on a LFL basis, supported by higher sales in China, Korea, Japan and the Asia Travel Retail channel.
COTY’s Strategic & Financial UpdatesThe company’s curated strategic framework, which was unveiled last quarter, focuses on setting clearer priorities, directing investments more selectively, enhancing execution capabilities and strengthening support for its core businesses to drive focused growth. COTY is integrating this framework into its fiscal 2027 plans across both divisions, with a focus on streamlining and efficiency. This includes lowering the number of smaller launches, reducing marketing asset production costs, partly through broader use of AI across owned brands, while increasing spending on consumer engagement. It is working to simplify its operating model, aimed at driving stronger sell-out performance and expanding market share in time.
The company ended the quarter with financial net debt of $2.96 billion and a leverage ratio (net debt to adjusted EBITDA) of 3.4. Free cash flow was $275.6 million at the end of the nine months ending March 31, 2026. Cash and cash equivalents were $257.1 million at quarter end.
Coty’s OutlookConsumer demand for beauty stays resilient, with strength in fragrances and cosmetics. While the Middle East conflict weighs on sales trends, consumer demand in developed markets has been broadly consistent with recent periods. Nevertheless, Coty’s curated strategic framework, focusing on core brands and markets, reducing portfolio complexity and realizing savings opportunities to aid investments in consumer engagement and protect profitability, appears encouraging.
For the fourth quarter of fiscal 2026, Coty expects LFL revenues to decrease by a mid-single-digit percentage, indicating a moderate sequential improvement from the third-quarter sales trends. This reflects a benefit from an easy year-over-year comparison base, mainly offset by headwinds in the Middle East business, which is likely to impact Q4 sales by an expected 2-3%. On a reported basis, management predicts foreign exchange to have a neutral effect in the impending quarter.
Adjusted gross margins are likely to decline by roughly 100-200 bps year over year on operating deleverage from weaker shipments, tariff impacts, and elevated, though sequentially lower, excess and obsolescence, somewhat offset by productivity and procurement efforts. For Q4, Coty envisions adjusted EBITDA of $85-$95 million and adjusted EPS, excluding the equity swap, of breakeven to a loss of two cents per share.
For fiscal 2026, Coty anticipates adjusted EBITDA of approximately $838-$848 million, with adjusted EPS, excluding the equity swap, of 33-35 cents. Management forecasts free cash flow in the fourth quarter to be neutral to moderately positive, representing the seasonality of the business and working capital management.
For the Prestige division, the company continues to drive growth through a series of brand-building initiatives and product innovations across its fragrance portfolio. It is expanding the global reach of the Fall 2025 BOSS Bottled Beyond launch, with the BOSS Bottled franchise benefiting from share fiscal year-to-date across key markets, alongside U.S. distribution expansion and share gains for Hugo Boss in the US. A new Burberry Her campaign featuring Olivia Dean is reinforcing the strength of the franchise.
Looking ahead, the company is set to launch Calvin Klein Euphoria Elixirs in Spring 2026, a global female fragrance launch, with encouraging initial indicators in Europe and Travel Retail Americas. It is also elevating its Chloé Atelier des Fleurs line with the introduction of Les Essences Méditerranéennes, which is gaining strong traction in China. In addition, Marc Jacobs Beauty is set to debut in June 2026. Key launches are expected for fiscal 2027 across its core brands, including the introduction of a new Swarovski fragrance expected in the next year.
Consumer Beauty division is seeing progress with CoverGirl and Sally Hansen closing the gap with their respective categories in terms of retail sales. Both brands continue to outperform on a volume basis on robust performance from recent Spring product innovations. It continues to expand and strengthen its global presence for adidas, driven by the adidas Vibes scenting collection.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.
The consensus estimate has shifted 51.84% due to these changes.
VGM ScoresAt this time, Coty has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock has a score of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Coty has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
