Coty shares plunge 11.5% and fall back to their 20-day moving average after results
Investors are taking profits on Coty, two days after mixed quarterly results. The move comes in a session dominated by pressure on global markets, following the correction on Wall Street and in Asia.
A decline that brings the stock back to €3.16 despite a +27% quarter
The stock fell 11.73% to €3.16, compared with €3.58 at the previous close, while the CAC 40 fell 1.64%. This decline wipes out a large part of the recent rebound: the stock was still up 6% over seven days and more than 27% over three months. Coty published its first-quarter results for fiscal year 2027 on Wednesday, November 4.
Net income attributable to the group rose 64%, to $106.2 million, and adjusted EPS of $0.16 exceeded the $0.12 expected. Adjusted EBITDA, however, fell 7%, to $274.2 million, and revenue declined 1%, to $1,555.2 million.
Net income also includes a $14.8 million gain linked to the revaluation of an equity swap. The same day, the group extended its Marc Jacobs license to 40 years.
The MM20 at €2.91 holds for now and the RSI remains at 59
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Despite the magnitude of the decline, the price remains 8.6% above its MM20 at €2.91, and the MM50 stands at €2.58. The RSI, at 59, signals neither overbought nor oversold conditions: the move brings the stock back toward its moving averages without breaking through them.
The resistance level at €3.58, which corresponds to the previous day's close, is now more than 13% above the current price.
In the data published with the results, management describes 2027 as a transition year and warns that work remains to move from early signs of recovery to a broad-based turnaround. It also cites high freight and raw material costs, linked to the Middle East conflict, among the risks to gross margin.
In the first quarter, the six main prestige fragrance brands returned to growth (+5% on a like-for-like basis), after a 6% decline in the previous half-year. The MM20 at €2.91 is the level to watch in the short term.
« we have more work to do to translate green shoots into a broad-based recovery » ; « FY27 will be a transition year »
Risks mentioned
Pression sur les marges brutes liée aux coûts de fret et de matériaux élevés en raison du conflit au Moyen-Orient
Sell-out global en retrait du marché dans les divisions Prestige et Consumer Beauty
Incertitude macroéconomique et environnement de marché contrasté
Opportunities identified
Top 6 marques Prestige de base retourning to growth (5% LFL en Q1) après déclin de 6% en H1 FY26
Marc Jacobs Beauty makeup launch réussie avec ventes au détail dépassant les objectifs
Amélioration continue de la position de force sur les marchés clés (États-Unis, Asie-Pacifique, Amérique latine)
Outlook / guidance
Management commentary: Coty expects 2Q27 LFL revenue to decline by a low-single-digit percentage; Coty anticipates Q2 adjusted EBITDA to decline by a high-single-digit percentage; This is expected to result in adjusted EPS, excluding the equity swap, of $0.16 to $0.18 per share
The information presented in this article is provided for informational purposes only and does not constitute an investment recommendation, an incentive to buy or sell a financial asset, or investment advice. Readers are invited to conduct their own research before making any decision.
Investments in the stock market involve risks, including the risk of capital loss. Past performance of an asset or market is no guarantee of future results. Any investment decision should be made taking into account your personal financial situation, objectives and risk tolerance.
