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Coty Q1 Earnings on Deck: Key Factors You Should Understand
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Key Takeaways
Coty is expected to post a 5.3% year-over-year revenue decline in fiscal Q1 2026.
Retailer destocking and tariffs are pressuring Coty's near-term top-line performance.
Prestige fragrance launches and cost-saving programs may help offset revenue headwinds.
Coty Inc. ((COTY - Free Report) ) is likely to register a decline in the top line when it reports first-quarter fiscal 2026 earnings on Nov. 5. The Zacks Consensus Estimate for revenues is pegged at $1.58 billion, indicating a decrease of 5.3% from the prior-year reported figure.
The consensus mark for earnings has been stable in the past 30 days at 15 cents per share, which is in line with the year-ago quarter’s reported figure. COTY delivered a trailing four-quarter negative earnings surprise of 187.8%, on average.
Coty has been navigating several operational and market challenges across key areas of its portfolio, particularly in the United States, where retailer destocking continues to pressure results. On the last earnings call, management noted that efforts to normalize trade inventories will persist through the first half of fiscal 2026, leading to lower sell-in despite steady consumer sell-out trends. These actions, while necessary for healthier growth ahead, have been weighing on near-term revenues. We expect organic LFL revenues to decline 7.2% for the first quarter of fiscal 2026.
In addition, U.S. tariffs on European-made prestige fragrances and Chinese-sourced components are expected to create a roughly $70 million headwind in fiscal 2026, with the greatest impact anticipated in the first half before mitigation measures take effect. The company is also contending with a more promotional beauty market and difficult year-over-year comparisons following last year’s blockbuster launches, factors that are likely to further constrain near-term top-line performance.
Nonetheless, Coty’s ongoing strategic initiatives are likely to have provided partial support to performance in the quarter. The company’s continued focus on expanding its prestige fragrance portfolio, introducing new launches and strengthening e-commerce and digital execution might have helped offset some top-line pressures. Moreover, ongoing productivity and cost-saving programs are expected to have supported margins and enhance operational efficiency.
Earnings Whispers for COTY Stock
Our proven model does not predict an earnings beat for Coty this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Coty has a Zacks Rank #3 and an Earnings ESP of -11.12%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Some Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
The company is expected to register growth in both top and bottom lines when it reports third-quarter 2025 results. The consensus mark for revenues is pegged at $191.7 million, which indicates an increase of 32.2% from the figure reported in the year-ago quarter. The Zacks Consensus Estimate for Vital Farms’ quarterly earnings per share of 30 cents implies an increase of 87.5% from 16 cents reported in the year-ago quarter. VITL delivered a trailing four-quarter earnings surprise of 35.8%, on average.
Ollie's Bargain Outlet Holdings, Inc. ((OLLI - Free Report) ) currently has an Earnings ESP of +6.54% and a Zacks Rank of 2. The consensus mark for Ollie's Bargain’s third-quarter fiscal 2025 revenues is pegged at $615.7 million, which indicates growth of 19% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for quarterly EPS is pegged at 71 cents, which implies a 22.4% increase year over year. OLLI delivered a trailing four-quarter earnings surprise of 4.2%, on average.
The Campbell's Company ((CPB - Free Report) ) currently has an Earnings ESP of +1.49% and a Zacks Rank of 3. The company is expected to register a decline in both top and bottom lines when it reports first-quarter 2026 results. The consensus mark for revenues is pegged at $2.67 billion, which indicates a decrease of 3.8% from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for The Campbell's Company’s quarterly earnings per share of 74 cents implies a decrease of 16.9% from 89 cents reported in the year-ago quarter. CPB delivered a trailing four-quarter earnings surprise of 6.2%, on average.
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Coty Q1 Earnings on Deck: Key Factors You Should Understand
Key Takeaways
Coty Inc. ((COTY - Free Report) ) is likely to register a decline in the top line when it reports first-quarter fiscal 2026 earnings on Nov. 5. The Zacks Consensus Estimate for revenues is pegged at $1.58 billion, indicating a decrease of 5.3% from the prior-year reported figure.
The consensus mark for earnings has been stable in the past 30 days at 15 cents per share, which is in line with the year-ago quarter’s reported figure. COTY delivered a trailing four-quarter negative earnings surprise of 187.8%, on average.
Coty Price, Consensus and EPS Surprise
Coty price-consensus-eps-surprise-chart | Coty Quote
Things to Know About COTY’s Upcoming Results
Coty has been navigating several operational and market challenges across key areas of its portfolio, particularly in the United States, where retailer destocking continues to pressure results. On the last earnings call, management noted that efforts to normalize trade inventories will persist through the first half of fiscal 2026, leading to lower sell-in despite steady consumer sell-out trends. These actions, while necessary for healthier growth ahead, have been weighing on near-term revenues. We expect organic LFL revenues to decline 7.2% for the first quarter of fiscal 2026.
In addition, U.S. tariffs on European-made prestige fragrances and Chinese-sourced components are expected to create a roughly $70 million headwind in fiscal 2026, with the greatest impact anticipated in the first half before mitigation measures take effect. The company is also contending with a more promotional beauty market and difficult year-over-year comparisons following last year’s blockbuster launches, factors that are likely to further constrain near-term top-line performance.
Nonetheless, Coty’s ongoing strategic initiatives are likely to have provided partial support to performance in the quarter. The company’s continued focus on expanding its prestige fragrance portfolio, introducing new launches and strengthening e-commerce and digital execution might have helped offset some top-line pressures. Moreover, ongoing productivity and cost-saving programs are expected to have supported margins and enhance operational efficiency.
Earnings Whispers for COTY Stock
Our proven model does not predict an earnings beat for Coty this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Coty has a Zacks Rank #3 and an Earnings ESP of -11.12%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Some Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Vital Farms ((VITL - Free Report) ) currently has an Earnings ESP of +2.65% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is expected to register growth in both top and bottom lines when it reports third-quarter 2025 results. The consensus mark for revenues is pegged at $191.7 million, which indicates an increase of 32.2% from the figure reported in the year-ago quarter. The Zacks Consensus Estimate for Vital Farms’ quarterly earnings per share of 30 cents implies an increase of 87.5% from 16 cents reported in the year-ago quarter. VITL delivered a trailing four-quarter earnings surprise of 35.8%, on average.
Ollie's Bargain Outlet Holdings, Inc. ((OLLI - Free Report) ) currently has an Earnings ESP of +6.54% and a Zacks Rank of 2. The consensus mark for Ollie's Bargain’s third-quarter fiscal 2025 revenues is pegged at $615.7 million, which indicates growth of 19% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for quarterly EPS is pegged at 71 cents, which implies a 22.4% increase year over year. OLLI delivered a trailing four-quarter earnings surprise of 4.2%, on average.
The Campbell's Company ((CPB - Free Report) ) currently has an Earnings ESP of +1.49% and a Zacks Rank of 3. The company is expected to register a decline in both top and bottom lines when it reports first-quarter 2026 results. The consensus mark for revenues is pegged at $2.67 billion, which indicates a decrease of 3.8% from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for The Campbell's Company’s quarterly earnings per share of 74 cents implies a decrease of 16.9% from 89 cents reported in the year-ago quarter. CPB delivered a trailing four-quarter earnings surprise of 6.2%, on average.