What caused COTY's Q2 2025 earnings to fall short of expectations?

COTY's Q2 2025 earnings fell short of expectations due to a combination of factors: 1. **Slowing Demand for Cosmetics**: Coty experienced a slowdown in demand for cosmetics, especially in the United States. This trend was reflected in the revenue figures, which showed a 3% year-over-year decline in revenue. 2. **Retailer Inventory Reductions**: Coty faced challenges due to tighter control of beauty inventory by retailers, which led to a reduction in demand for its products. This strategic shift by retailers can significantly impact Coty's sales figures. 3. **Market Challenges**: The broader market environment also played a role, as Coty navigated through a period of restructuring and adapted to the rapidly changing consumer landscape. These factors contributed to the company's performance falling short of expectations. In summary, Coty's Q2 2025 earnings were affected by a combination of slowing demand for cosmetics, retailer inventory reductions, and broader market challenges. These factors collectively contributed to the company's financial performance not meeting expectations.