Coty Forecasts Profit Below Wall Street Estimates
The beauty company expects current-quarter adjusted earnings of 16 to 18 cents per share as Middle East conflict costs weigh on its turnaround.
Updated on Nov. 4, 2026 in Corporate Finance
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Coty forecast current-quarter adjusted earnings per share of 16 to 18 cents, largely below Wall Street estimates of 16 cents. The company reported first-quarter sales of $1.56 billion and adjusted earnings of 16 cents per share, both ahead of analyst expectations.
Why it matters
Higher costs for plastics, metal, and packaging, along with shipping delays tied to the prolonged Middle East conflict, are adding pressure to Coty's cost-cutting and brand-focused turnaround. Coty had withheld its annual forecasts last quarter, so this guidance offers the first detailed look at its outlook.
Coty's first-quarter sales of $1.56 billion beat the $1.52 billion analyst estimate, and adjusted earnings of 16 cents per share beat the 12 cent estimate. Current-quarter guidance of 16 to 18 cents per share sits at or below the 16 cent consensus, and the company has not quantified the cost hit from the Middle East conflict.
The players
Coty Inc.
Coty is a global beauty company with a portfolio of fragrance and cosmetics brands that is currently pursuing a turnaround focused on its largest brands and cash generation.
Soraya Benchikh
Soraya Benchikh is Coty's Chief Financial Officer, who assumed the role in September 2026.
The details
Coty launched 'Coty.Curated' to concentrate on its biggest brands, cost-cutting, and cash generation. The company's cost pressures stem from higher materials and packaging prices and shipping delays linked to the prolonged Middle East conflict.
Timeline
Last quarter: Coty withheld its annual forecasts due to the Middle East impact.
September 2026: Soraya Benchikh assumed the role of Chief Financial Officer.
First quarter: Coty reported sales of $1.56 billion and adjusted earnings of 16 cents per share.
Current quarter: Coty forecast adjusted earnings of 16 to 18 cents per share.
Market Landscape
Coty's guidance comes as it tries to reset its business around fewer, larger brands through the 'Coty.Curated' program, which aims to concentrate spending and improve cash generation. The new cost pressures from the Middle East conflict test whether that narrower focus can offset rising materials and shipping costs in the beauty sector.
Investors weighing Coty shares should note that the company's guidance sits largely below Wall Street estimates, which may affect how the stock is valued in the near term. Holders can track whether future quarters show the cost increases from materials, packaging, and shipping easing or deepening.
The takeaway
Coty's first-quarter beat shows its portfolio work is producing results, but the forecast below expectations signals that rising input and shipping costs could limit the turnaround's near-term gains. Watching how quickly those costs ease will indicate whether the company can sustain its earnings momentum.
Further reading
For more on how company guidance and profit forecasts shape investor expectations, explore Corporate Finance coverage.
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