Coty management highlights $30 million in tariffs and European retailer inventory reductions as key fiscal Q3 pressures.
Coty reported $30 million in tariff impacts for the fiscal year, alongside inventory reductions by European retailers and Middle East disruptions. The company is shifting to a retail-driven model to narrow the gap between sell-in and sell-out volumes, aiming to improve execution and working capital.
Management noted a highly promotional environment and oil-price volatility as ongoing risks, though hedges protect against inflation through 2026. Earlier attempts to target Gen Z with COVERGIRL missed, prompting a repositioning toward Gen X consumers.
Coty denied rumors of a prestige divestiture, confirmed exits from Orveda and smaller markets, and reaffirmed focus on brands like Burberry and Hugo Boss.