Coty Inc. (NYSE:COTY) Financial Performance Analysis

• Coty reported an earnings per share (EPS) of -$0.05, missing the estimated EPS of $0.01, indicating a decline from the previous year.
• The company exceeded revenue expectations, reporting $1.25 billion against the estimated $1.21 billion, driven by strong demand for premium fragrances.
• Financial challenges are evident with a negative P/E ratio of -10.70 and a debt-to-equity ratio of 1.12, yet Coty's revenue performance showcases its market resilience.

Coty Inc. (NYSE:COTY) is a global beauty company known for its wide range of cosmetics, skincare, and fragrance products. The company operates in a competitive market with major players like L'Oréal and Estée Lauder. Despite the competition, Coty has carved out a niche, particularly in the premium fragrance segment.

On August 20, 2025, Coty reported an earnings per share (EPS) of -$0.05, missing the estimated EPS of $0.01. This marks a decline from the previous year's loss of $0.03 per share, as highlighted by Zacks. Despite this, Coty exceeded revenue expectations, reporting $1.25 billion compared to the estimated $1.21 billion.

The company's revenue growth is driven by strong demand for premium fragrances in Europe and other international markets. This indicates Coty's ability to capitalize on the growing global interest in high-end fragrances, a positive aspect of its financial performance.

Coty's financial metrics reveal challenges. The negative price-to-earnings (P/E) ratio of -10.70 and an earnings yield of -9.34% indicate current unprofitability. The price-to-sales ratio of 0.71 suggests investors pay 71 cents for every dollar of sales, while the enterprise value to sales ratio of 1.35 reflects the company's total valuation relative to sales.

The debt-to-equity ratio of 1.12 shows Coty relies significantly on debt compared to equity. The current ratio of 0.82 suggests potential challenges in covering short-term liabilities with short-term assets. Despite these challenges, Coty's revenue performance highlights its resilience in a competitive market.