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Coty's Q1 Earnings on Deck: Key Factors You Should Understand
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Key Takeaways
Coty's Q1 revenues are expected to decline 2.9% to $1.5B, while EPS is projected to remain flat at 12 cents.
COTY may face weakness across Prestige and Consumer Beauty amid selective consumer spending and competition.
Coty's profitability may face pressure from lower shipment volumes, inventory costs and tariffs.
Coty Inc. (COTY - Free Report) is likely to register a decline in the top line when it reports first-quarter fiscal 2027 earnings on Nov. 4. The Zacks Consensus Estimate for revenues is pegged at $1.5 billion, indicating a decrease of 2.9% from the prior-year reported figure.
The consensus mark for earnings has remained unchanged at 12 cents per share over the past 30 days, in line with the prior-year reported figure. COTY delivered a trailing four-quarter negative earnings surprise of 47.4%, on average.
Coty is likely to have witnessed pressured top-line performance in the fiscal first quarter, reflecting continued challenges across its Prestige and Consumer Beauty businesses. On its fiscal fourth-quarter earnings call, management guided for like-for-like revenues to decline a low-to-mid-single-digit percentage in the fiscal first quarter. The timing of customer orders and unfavorable year-over-year comparisons might have contributed to the weakness in sales. Our model suggests like-for-like revenues to slip 2.7% in the first quarter of fiscal 2027.
The operating environment is likely to have remained mixed during the quarter. While consumer demand for fragrances and cosmetics has remained resilient, increasingly selective spending and intense competition might have constrained Coty's performance. In Prestige, innovation across BOSS Bottled Beyond, Calvin Klein Euphoria Elixirs and Marc Jacobs Beauty makeup, alongside expanded Sephora distribution, is likely to have provided some support. However, continued weakness across smaller fragrance lines might have limited growth.
Consumer Beauty is likely to have remained challenged, although improving trends across Sally Hansen, CoverGirl and Rimmel might have provided some relief. Coty's Color the Future initiative, emphasizing focused product innovation, stronger marketing support and streamlined assortments, is likely to have aided execution. Meanwhile, increased consumer engagement, AI-enabled content capabilities and more targeted brand investments might have supported efforts to improve retail performance.
On the margin front, Coty anticipates adjusted gross margin to decline 50-100 basis points year over year in the fiscal first quarter. Lower shipment volumes, unfavorable cost absorption, elevated inventory-related expenses and tariff pressures are likely to have weighed on profitability. However, productivity savings, procurement efficiencies and tighter cost controls under the Coty.Curated framework might have partially offset these headwinds. Management projects a low-teens percentage decline in adjusted EBITDA.
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 #4 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Some Stocks With a 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 Zacks Consensus Estimate for BJ’s Wholesale Club’s upcoming quarter’s earnings per share is pegged at 1.22 cents, implying 5.2% year-over-year growth. The consensus estimate for BJ’s Wholesale Club’s quarterly revenues is pegged at $5.9 billion, which indicates an increase of 11.1% from the figure reported in the prior-year quarter. BJ has a trailing four-quarter earnings surprise of 4.8%, on average.
Sysco Corporation (SYY - Free Report) currently has an Earnings ESP of +2.46% and a Zacks Rank of 3. The Zacks Consensus Estimate for Sysco’s upcoming quarter’s earnings per share is pegged at $1.17, which implies a 1.7% increase year over year.
The consensus estimate for Sysco’s quarterly revenues is pegged at $22.2 billion, which indicates a surge of 4.9% from the figure reported in the prior-year quarter. SYY delivered a trailing four-quarter earnings surprise of around 1%, on average.
General Mills, Inc. (GIS - Free Report) currently has an Earnings ESP of +0.26% and a Zacks Rank of 3. The Zacks Consensus Estimate for General Mills’ upcoming quarter’s EPS is pegged at 96 cents, implying a 12.7% year-over-year decrease.
The Zacks Consensus Estimate for quarterly revenues is pegged at $4.7 billion, which indicates a decrease of 2.8% from the figure reported in the prior-year quarter. GIS has a trailing four-quarter earnings surprise of 3.6%, on average.
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Coty's 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 2027 earnings on Nov. 4. The Zacks Consensus Estimate for revenues is pegged at $1.5 billion, indicating a decrease of 2.9% from the prior-year reported figure.
The consensus mark for earnings has remained unchanged at 12 cents per share over the past 30 days, in line with the prior-year reported figure. COTY delivered a trailing four-quarter negative earnings surprise of 47.4%, 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 is likely to have witnessed pressured top-line performance in the fiscal first quarter, reflecting continued challenges across its Prestige and Consumer Beauty businesses. On its fiscal fourth-quarter earnings call, management guided for like-for-like revenues to decline a low-to-mid-single-digit percentage in the fiscal first quarter. The timing of customer orders and unfavorable year-over-year comparisons might have contributed to the weakness in sales. Our model suggests like-for-like revenues to slip 2.7% in the first quarter of fiscal 2027.
The operating environment is likely to have remained mixed during the quarter. While consumer demand for fragrances and cosmetics has remained resilient, increasingly selective spending and intense competition might have constrained Coty's performance. In Prestige, innovation across BOSS Bottled Beyond, Calvin Klein Euphoria Elixirs and Marc Jacobs Beauty makeup, alongside expanded Sephora distribution, is likely to have provided some support. However, continued weakness across smaller fragrance lines might have limited growth.
Consumer Beauty is likely to have remained challenged, although improving trends across Sally Hansen, CoverGirl and Rimmel might have provided some relief. Coty's Color the Future initiative, emphasizing focused product innovation, stronger marketing support and streamlined assortments, is likely to have aided execution. Meanwhile, increased consumer engagement, AI-enabled content capabilities and more targeted brand investments might have supported efforts to improve retail performance.
On the margin front, Coty anticipates adjusted gross margin to decline 50-100 basis points year over year in the fiscal first quarter. Lower shipment volumes, unfavorable cost absorption, elevated inventory-related expenses and tariff pressures are likely to have weighed on profitability. However, productivity savings, procurement efficiencies and tighter cost controls under the Coty.Curated framework might have partially offset these headwinds. Management projects a low-teens percentage decline in adjusted EBITDA.
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 #4 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Some Stocks With a 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.
BJ’s Wholesale Club Holdings, Inc. (BJ - Free Report) has an Earnings ESP of +2.54% and currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BJ’s Wholesale Club’s upcoming quarter’s earnings per share is pegged at 1.22 cents, implying 5.2% year-over-year growth. The consensus estimate for BJ’s Wholesale Club’s quarterly revenues is pegged at $5.9 billion, which indicates an increase of 11.1% from the figure reported in the prior-year quarter. BJ has a trailing four-quarter earnings surprise of 4.8%, on average.
Sysco Corporation (SYY - Free Report) currently has an Earnings ESP of +2.46% and a Zacks Rank of 3. The Zacks Consensus Estimate for Sysco’s upcoming quarter’s earnings per share is pegged at $1.17, which implies a 1.7% increase year over year.
The consensus estimate for Sysco’s quarterly revenues is pegged at $22.2 billion, which indicates a surge of 4.9% from the figure reported in the prior-year quarter. SYY delivered a trailing four-quarter earnings surprise of around 1%, on average.
General Mills, Inc. (GIS - Free Report) currently has an Earnings ESP of +0.26% and a Zacks Rank of 3. The Zacks Consensus Estimate for General Mills’ upcoming quarter’s EPS is pegged at 96 cents, implying a 12.7% year-over-year decrease.
The Zacks Consensus Estimate for quarterly revenues is pegged at $4.7 billion, which indicates a decrease of 2.8% from the figure reported in the prior-year quarter. GIS has a trailing four-quarter earnings surprise of 3.6%, on average.