Levi & Korsinsky Investigates Possible Securities Fraud by Coty Inc. (COTY)

Coty's quarterly loss stands out within the global beauty and personal care sector, an industry that has generally posted resilient consumer demand over the past two years. Peers such as Estée Lauder, L'Oréal, and Shiseido (Shiseido Aktie) reported stable or improving margins in their most recent quarters, making Coty's $126.9 million deficit a notable outlier. The company's like-for-like revenue declined approximately 3% in the quarter, a reversal from the low-single-digit growth the company had guided investors to expect. The magnitude of the EPS shortfall--a 22% miss relative to consensus--placed Coty among the widest negative earnings surprises in the mid-cap consumer space for the reporting period, suggesting the gap between the company's public outlook and its internal trajectory may have been significant.

Alongside the earnings miss, Coty withdrew its full-year FY 2026 guidance and unveiled a new "Coty. Curated." turnaround strategy under interim CEO Markus Strobel, aimed at refocusing the portfolio on core brands. The simultaneous retraction of forward-looking targets and introduction of a restructuring plan compounded the negative reaction among investors and analysts.

Prior to the announcement, Coty's management had expressed optimism about the second quarter during the Q1 FY 2026 earnings call on November 6, 2025. CEO Sue Nabi stated the company expected to be at the "more favorable end of our guidance range" for Q2. The contrast between that characterization and the reported loss has drawn scrutiny.

If you suffered a loss on your Coty Inc. securities and would like to explore a potential recovery under the federal securities laws, Learn More About the Investigation or contact Joseph E. Levi, Esq. via email at jlevi@levikorsinsky.com or call (212)363-7500 to speak to our team of experienced shareholder advocates.

WHY LEVI & KORSINSKY: Over the past 20 years, Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States. Attorney Advertising. Prior results do not guarantee similar outcomes.

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