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Coty Accelerates AI Across Operations: A New Margin Lever?
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Key Takeaways
Coty expands AI across content, procurement and back-end workflows to speed decision-making.
Coty uses predictive analytics, chatbots and digital assistants to enhance efficiency and user experience.
Coty sees early savings from automation and expects these benefits to scale over the coming year.
Coty Inc. ((COTY - Free Report) ) is steadily weaving artificial intelligence into the core of its operation. The company has now activated a refreshed digital roadmap designed to push AI deeper into day-to-day functions. This shift reflects Coty’s intent to transform how decisions are made, how content is produced and how resources are allocated.
A major pillar of this effort involves elevating content creation and automating routine workflows using agentic AI. By applying predictive analytics and richer data visualization, Coty is aiming to support faster and more informed decision-making. The company is also introducing AI-driven chatbots to enhance user experiences, minimizing manual effort while improving responsiveness.
Coty is extending AI into strategic functions as well, including procurement. New digital assistants are helping reshape how contracts are structured and how negotiations unfold. At the same time, the company is preparing for the growing wave of agentic shopping on retail platforms. Coty has already begun building tools to refine product selection, strengthen personalization and power virtual try-on technologies.
These layers of automation and intelligence are also reshaping Coty’s cost structure. Streamlined content production and more efficient back-end processes are unlocking savings that can be redeployed toward working media. Management noted that the early results are encouraging, with benefits already visible and expected to scale meaningfully over the next year as the new systems mature.
Coty’s expanding AI roadmap appears well-positioned to become a meaningful margin lever. The company is already capturing early efficiencies in procurement, content creation and back-end automation, with management expecting these gains to build through the coming year.
Coty’s Zacks Rank & Share Price Performance
Shares of this Zacks Rank #3 (Hold) company have lost 22.9% in the past three months compared with the broader Consumer Staples sector’s 3.5% decline. COTY has also underperformed the industry’s decline of 5.8% and the S&P 500 index’s growth of 7.9%, during the same period.
COTY Stock's Past 3 Months Performance
Image Source: Zacks Investment Research
Is COTY a Value Play Stock?
Coty currently trades at a forward 12-month P/E ratio of 7.32, below the industry and the sector’s average of 26.35 and 16.48, respectively.
The Zacks Consensus Estimate for Sally Beauty’s current fiscal-year sales and earnings calls for growth of 1.3% and 8.4%, respectively, from the year-ago reported numbers. Sally Beauty delivered a trailing four-quarter average earnings surprise of 10.3%.
Ulta Beauty, Inc. ((ULTA - Free Report) ) operates as a specialty beauty retailer in the United States. It currently holds a Zacks Rank #2. ULTA delivered a trailing four-quarter earnings surprise of 16.3%, on average.
The Zacks Consensus Estimate for Ulta Beauty’s current fiscal-year sales indicates growth of 6.8% from the year-ago reported numbers.
Five Below, Inc. ((FIVE - Free Report) ) operates as a specialty value retailer in the United States and currently carries a Zacks Rank #2. FIVE delivered a trailing four-quarter earnings surprise of 50.5%, on average.
The Zacks Consensus Estimate for Five Below’s current fiscal-year sales and earnings calls for growth of 16.2% and 1.2%, respectively, from the year-ago reported numbers.
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Coty Accelerates AI Across Operations: A New Margin Lever?
Key Takeaways
Coty Inc. ((COTY - Free Report) ) is steadily weaving artificial intelligence into the core of its operation. The company has now activated a refreshed digital roadmap designed to push AI deeper into day-to-day functions. This shift reflects Coty’s intent to transform how decisions are made, how content is produced and how resources are allocated.
A major pillar of this effort involves elevating content creation and automating routine workflows using agentic AI. By applying predictive analytics and richer data visualization, Coty is aiming to support faster and more informed decision-making. The company is also introducing AI-driven chatbots to enhance user experiences, minimizing manual effort while improving responsiveness.
Coty is extending AI into strategic functions as well, including procurement. New digital assistants are helping reshape how contracts are structured and how negotiations unfold. At the same time, the company is preparing for the growing wave of agentic shopping on retail platforms. Coty has already begun building tools to refine product selection, strengthen personalization and power virtual try-on technologies.
These layers of automation and intelligence are also reshaping Coty’s cost structure. Streamlined content production and more efficient back-end processes are unlocking savings that can be redeployed toward working media. Management noted that the early results are encouraging, with benefits already visible and expected to scale meaningfully over the next year as the new systems mature.
Coty’s expanding AI roadmap appears well-positioned to become a meaningful margin lever. The company is already capturing early efficiencies in procurement, content creation and back-end automation, with management expecting these gains to build through the coming year.
Coty’s Zacks Rank & Share Price Performance
Shares of this Zacks Rank #3 (Hold) company have lost 22.9% in the past three months compared with the broader Consumer Staples sector’s 3.5% decline. COTY has also underperformed the industry’s decline of 5.8% and the S&P 500 index’s growth of 7.9%, during the same period.
COTY Stock's Past 3 Months Performance
Image Source: Zacks Investment Research
Is COTY a Value Play Stock?
Coty currently trades at a forward 12-month P/E ratio of 7.32, below the industry and the sector’s average of 26.35 and 16.48, respectively.
COTY P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Stocks to Consider
Sally Beauty Holdings, Inc. ((SBH - Free Report) ) operates as a specialty retailer and distributor of professional beauty supplies. It currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Sally Beauty’s current fiscal-year sales and earnings calls for growth of 1.3% and 8.4%, respectively, from the year-ago reported numbers. Sally Beauty delivered a trailing four-quarter average earnings surprise of 10.3%.
Ulta Beauty, Inc. ((ULTA - Free Report) ) operates as a specialty beauty retailer in the United States. It currently holds a Zacks Rank #2. ULTA delivered a trailing four-quarter earnings surprise of 16.3%, on average.
The Zacks Consensus Estimate for Ulta Beauty’s current fiscal-year sales indicates growth of 6.8% from the year-ago reported numbers.
Five Below, Inc. ((FIVE - Free Report) ) operates as a specialty value retailer in the United States and currently carries a Zacks Rank #2. FIVE delivered a trailing four-quarter earnings surprise of 50.5%, on average.
The Zacks Consensus Estimate for Five Below’s current fiscal-year sales and earnings calls for growth of 16.2% and 1.2%, respectively, from the year-ago reported numbers.