NYSE: COTY

NEW YORK, Feb. 19, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP is investigating Coty Inc. (NYSE: COTY) following the company's disclosure of a $126.9 million net loss for the second quarter of fiscal year 2026 and non-GAAP earnings per share of $0.14, which fell $0.04 short of the $0.18 consensus estimate. The results, released after market close on February 5, 2026, sent shares down approximately 15% in after-hours and pre-market trading, pushing the stock to a 52-week low of $2.66. Investors who purchased COTY shares and suffered losses may obtain more information about this investigation.

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 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.

Levi & Korsinsky encourages COTY investors who experienced losses to consider their options. Shareholders who lost money on their Coty investment may click here to learn more about this investigation and their legal rights.

Levi & Korsinsky, LLP is a nationally recognized firm with offices in New York, California, Connecticut, and Washington, D.C. that represents investors in securities litigation and has recovered hundreds of millions of dollars for its clients. For more information, visit www.zlk.com. 

CONTACT:

Joseph E. Levi, Esq.
Levi & Korsinsky, LLP
33 Whitehall Street, 27th Floor
New York, NY 10004
Tel: (212) 363-7500
Fax: (212) 363-7171
Email: jlevi@levikorsinsky.com
www.zlk.com 

View original content to download multimedia:https://www.prnewswire.com/news-releases/investigation-into-cotys-126-9-million-quarterly-loss-and-collapse-of-earnings-expectations-302693050.html

SOURCE Levi & Korsinsky, LLP