Coty (COTY) Q4 Earnings: What to Expect and Key Takeaways

As Coty Inc. (COTY) prepares to report its fourth-quarter and full-year fiscal 2024 earnings, investors are eager to understand the company's performance and outlook. Coty, a global leader in beauty products, has been focusing on its prestige and consumer beauty segments, driving strong financial results in recent quarters. Here's what you need to know ahead of COTY's earnings release.

1. Recent Performance and Expectations:
- In the first quarter of fiscal year 2025, Coty reported revenue growth of 18% on both a reported and like-for-like (LFL) basis, well ahead of expectations and its recently raised guidance of +10-12% for the first half of the fiscal year.
- The company's prestige segment grew at a very strong rate of 23% on a reported basis and 22% on an LFL basis, driven by momentum in its core fragrance lines and recent innovations like the Burberry Goddess Eau de Parfum.
- Coty's consumer beauty segment also contributed to the company's strong performance, with revenues growing by 10% on both a reported and LFL basis.



2. Key Takeaways from Q3 Results:
- Coty's net revenues grew 8% on a reported basis and 10% on a LFL basis in the third quarter of fiscal year 2024, driven by growth in fragrances, color cosmetics, skin care, and body care.
- The company's reported and adjusted operating income growth, as well as reported and adjusted gross and operating margin expansion, solidified nearly four years of Coty reporting results in-line to ahead of expectations.
- Coty's strong reported net sales momentum in Q3 was supported by high-single-digit percentage growth in all regions, and on a year-to-date basis, all regions generated double-digit percentage reported net revenue growth.

3. Outlook and Opportunities:
- For the upcoming quarter, Coty expects its financial results to be consistent with its medium-term algorithm, with its fiscal year 2025 outlook further reinforced by its white space opportunities, robust commercial plans, and the strength of its innovation pipeline, including the Burberry Goddess Intense launch.
- The company's strong performance in the first quarter and its strategic focus on prestige and consumer beauty segments position it well for continued success in the upcoming quarter.

In conclusion, Coty's Q4 earnings report will provide valuable insights into the company's performance and outlook. With a strong focus on prestige and consumer beauty segments, recent innovations, and a commitment to growth, Coty is well-positioned to continue delivering solid financial results. Investors should pay close attention to the company's earnings release and the subsequent conference call to better understand Coty's performance and future prospects.