Have you evaluated the performance of Coty's (COTY Quick QuoteCOTY - Free Report) international operations for the quarter ending June 2025? Given the extensive global presence of this beauty products company, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.

In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.

Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.

Our review of COTY's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.

The company's total revenue for the quarter stood at $1.25 billion, declining 8.1% year over year. Now, let's delve into COTY's international revenue breakdown to gain insights into the significance of its operations beyond home turf.

A Dive into COTY's International Revenue Trends

Of the total revenue, $574.2 million came from EMEA during the last fiscal quarter, accounting for 45.9%. This represented a surprise of +6.79% as analysts had expected the region to contribute $537.69 million to the total revenue. In comparison, the region contributed $610 million, or 47%, and $598.1 million, or 43.9%, to total revenue in the previous and year-ago quarters, respectively.

During the quarter, Asia Pacific contributed $167 million in revenue, making up 13.3% of the total revenue. When compared to the consensus estimate of $161.34 million, this meant a surprise of +3.51%. Looking back, Asia Pacific contributed $159.4 million, or 12.3%, in the previous quarter, and $182.3 million, or 13.4%, in the same quarter of the previous year.

Revenue Projections for Overseas Markets

Wall Street analysts expect Coty to report $1.61 billion in total revenue for the current fiscal quarter, indicating a decline of 3.7% from the year-ago quarter. EMEA and Asia Pacific are expected to contribute 48% (translating to $772.83 million), and 11.2% ($180.31 million) to the total revenue, respectively.

For the full year, the company is expected to generate $5.91 billion in total revenue, up 0.2% from the previous year. Revenues from EMEA and Asia Pacific are expected to constitute 48.2% ($2.85 billion), and 12% ($710.6 million) of the total, respectively.

Final Thoughts

Relying on global markets for revenues presents both prospects and challenges for Coty. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.

With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.

At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short-term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.

With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.

Currently, Coty holds a Zacks Rank #3 (Hold), signifying its potential to match the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Reviewing Coty's Recent Stock Price Trends

Over the past month, the stock has lost 23.2% versus the Zacks S&P 500 composite's 2.7% increase. The Zacks Consumer Staples sector, of which Coty is a part, has risen 1% over the same period. The company's shares have declined 20.3% over the past three months compared to the S&P 500's 11% increase. Over the same period, the sector has risen 1.1%