Why Did Coty Plunge 21.19%? Sales Forecasts, Economic Uncertainties

On August 21, 2025, Coty's stock experienced a significant drop of 21.19% in pre-market trading, reflecting investor concerns and market sentiment.

Coty has forecasted a decline in first-quarter like-for-like sales, projecting a 6% to 8% decrease compared to the 4.5% growth seen a year ago. This downturn is attributed to consumer caution and economic uncertainties. The company plans to mitigate these challenges by raising prices in its premium fragrances unit in the U.S. and by onshoring some production to reduce the impact of 15% duties on imports from Europe.

Despite exceeding market revenue expectations for the second quarter of 2025, Coty's sales fell by 8.1% year over year. The company reported Q4 FY2025 revenue of $1,252.4 million, an 8% year-over-year decline. This revenue drop, however, exceeded analyst forecasts by 3.67%, providing a baseline for future performance.

Coty's strategic focus on product launches in both its prestige and consumer beauty segments aims to drive growth amidst a challenging market environment. The company's historical performance, including a 10% net revenue CAGR in Prestige fragrance sales from FY21 through FY25, underscores its resilience and adaptability in the face of market fluctuations.