Law Offices of Howard G. Smith Encourages Coty Inc. (COTY) Shareholders To Inquire About Securities Fraud Class Action

BENSALEM, Pa.--( BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Coty Inc. (“Coty” or the “Company”) (NYSE: COTY) common stock between November 5, 2025 and February 4, 2026, inclusive (the “Class Period”). Coty investors have until May 22, 2026 to file a lead plaintiff motion.

IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN COTY INC. (COTY), CONTACT THE LAW OFFICES OF HOWARD G. SMITH TO PARTICIPATE IN THE ONGOING SECURITIES FRAUD LAWSUIT.

Contact the Law Offices of Howard G. Smith to discuss your legal rights by email at howardsmith@howardsmithlaw.com, by telephone at (215) 638-4847 or visit our website at www.howardsmithlaw.com.

What Happened?

On February 5, 2026, Coty released its second quarter fiscal 2026 financial results, revealing results below market expectations, including that net revenue decreased 6% on a like-for-like basis, reported gross margins decreased 200 basis points, and adjusted operating income declined 19%. The Company also withdrew its 2026 guidance for EBITDA and lowered its near-term outlook, stating “Coty anticipates Q3 gross margins to decline 200 to 300 basis points” and “approximately breakeven EPS.”

In the Company’s earnings call, recently appointed interim CEO, Markus Strobel, noted “we have not been delivering at the level we should” and the Company would need to invest in “disciplined execution, operational effectiveness and sufficient multiyear marketing support.” The Company’s CFO, Laurent Mercier also noted “the main headwind is from Consumer Beauty.”

On this news, Coty’s stock price fell $0.49, or 15.56%, to close at $2.66 per share on February 6, 2026, thereby injuring investors.

What Is The Lawsuit About?

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Coty’s Consumer Beauty segment was underperforming; (2) margins were compressed by increased marketing investments; (3) there was slowing growth in the Prestige fragrance marker; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

If you purchased Coty common stock, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:

Law Offices of Howard G. Smith,

3070 Bristol Pike, Suite 112,

Bensalem, Pennsylvania 19020,

Telephone: (215) 638-4847

Email: howardsmith@howardsmithlaw.com,

Visit our website at: www.howardsmithlaw.com.

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