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flag Coty missed earnings estimates in Q2 2026 due to declining sales and compressed margins, cutting full-year guidance.

flag Coty reported second-quarter 2026 earnings of $0.14 per share, missing estimates by $0.04 despite slightly higher revenue of $1.68 billion. flag The company posted a net loss of $62.3 million, with declining sales in its Consumer Beauty and Prestige segments due to a highly promotional environment, weak holiday demand, and retailer destocking. flag Margins compressed amid inflation, tariffs, and rising marketing costs, prompting Coty to withdraw full-year guidance and project a mid-single-digit decline in like-for-like sales for Q3. flag Under interim CEO Markus Strobel, the company is executing a strategic reset focused on core brands, SKU rationalization, AI-driven content, and increased digital marketing investment, with margin recovery expected in fiscal 2027. flag Shares dropped 16% to a 52-week low, reflecting ongoing investor concern over profitability and industry-wide challenges.

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