💄💰 Beauty, insiders, and a CFO with more than lipstick on his hands

COTY
$4.28
-0.05 (-1.15%)
As of Aug-29-2025 4:10 PM ET

CEO Had Bought Lots of Shares — Can Coty’s Perfume-Laden Portfolio Smell Like Profits Again?

Trigger: Insider Purchases (CEO + CFO = Confidence)

Insider buying is like perfume samples at Sephora — if the people closest to the counter keep spritzing, maybe there’s something worth wearing.

• Sue Nabi (CEO) 💋: Bought 260,000 shares at $3.92 (over $1M).

• Laurent Mercier (CFO) 🧮: Bought 15,500 shares at $3.94.

• Priya Srinivasan (Chief People, Purpose Officer) 🌍: Bought 30,000 shares at $3.84.

That’s not token spritzing. That’s a dousing. And it comes at a time when Coty’s stock price is hovering near drugstore-shelf levels.

Fun fact: Sue Nabi isn’t just any CEO — she’s a beauty industry legend. Before Coty, she ran L’Oréal Paris and Lancôme, and she even founded luxury skincare line Orveda. If she’s buying, maybe Coty’s story isn’t just smoke and mirrors.

Who Owns the Mirror? (Institutions + Insiders)

• 60.5% insider ownership 👩💼

• 37.4% institutional ownership 🏦

• 94.8% of float held by institutions 🧾

Translation: Between insiders and big funds, there isn’t much stock left floating around. If retail jumps in, the float could tighten like a new jar of face cream.

Notable holders:

• BlackRock 🏋️ with 51.3M shares (+10%).

• Vanguard 🛡️ with 36.7M shares (a small trim).

• BNP Paribas 💶, Credit Agricole 🇫🇷, Norges Bank 🇳🇴 … the usual global money heavyweights.

For Coty Inc. (COTY)'s Institutional Ownership breakdown, 🔍 see here

Recent Results: Smudged Mascara or Subtle Glow?

FY25 Highlights (12 months ending June 30, 2025):

• Revenue: $5.89B, down 4% 📉

• Prestige: $3.82B (65% of sales), slightly positive on like-for-like 💄

• Consumer Beauty: $2.07B, down 8% 💔

• Adjusted EBITDA: $1.08B (-1% YoY) but margins up 60 bps to 18.4% ✅

• Free Cash Flow: $278M 🪙

• Reported Net Loss: -$381M (ouch, that’s not blush, that’s red ink).

Q4 FY25 (3 months ending June 30, 2025):

• Revenue: $1.25B, down 8%

• Prestige: $761M (-5%)

• Consumer Beauty: $492M (-12%)

• Adjusted EBITDA: $127M, down 23%

• Net Loss: -$72M (better than last year’s -$100M, but still… woof).

On paper, Coty isn’t winning beauty pageants. But margins are improving, leverage is coming down, and insiders keep buying. Translation: management thinks the mirror selfie will look better soon.

Strategy: “All In to Win”

Coty’s calling card is fragrances. Think:

• Burberry, Gucci, Marc Jacobs, Boss, Tiffany & Co.

• New launches like Boss Bottled Beyond are already exceeding expectations.

• Fragrance “mists” (cheaper, high-volume products) are rolling out across Calvin Klein, adidas, Nautica, etc.

Add in:

• $1B in e-commerce sales 💻

• AI in demand planning and media allocation 🤖

• Sustainability cred: EcoVadis Gold rating, CDP Supplier Engagement A-List.

CEO Sue Nabi calls it “treatonomics”: people may skip a car upgrade, but they’ll splurge on a $90 perfume to feel alive. Or, if cash is tight, a $15 mist still works.

Balance Sheet: Powdered, But Heavy

• Debt: ~$3.75B financial net debt.

• Leverage ratio: 3.5x Net Debt/EBITDA.

• Goal: reduce to “investment grade” by FY26.

The company also holds a 25.8% stake in Wella, worth ~$1B — a hidden lipstick in the handbag. Still, with debt this high, one market hiccup could smudge the look.

👉 Want the full picture? Dive into Coty Inc. (COTY)'s financials here.

Valuation: Beauty Bargain or Value Trap?

As of August 2025:

• Market Cap: $3.7B (down from $8.7B a year ago 😱).

• Forward P/E: 9.7 (half what it was in 2024 = getting cheaper).

• PEG ratio: 0.18 (<1 usually screams value).

• Price/Sales: 0.63 (drugstore-aisle cheap).

The market’s basically saying: “We don’t believe in your makeover yet.” But insiders (and some funds) say: “Hold my perfume bottle.”

Risks: The Smudges on the Compact

1. Debt drag 💸: Leverage still high, though trending down.

2. Retailer caution 🛒: Inventory destocking, tariff uncertainty, and promotional pressure.

3. Net losses 📉: Profits are promised in FY26, but for now, it’s more losses than lip gloss.

4. Competition 💃: L’Oréal, Estée Lauder, Procter & Gamble — giants who can outspend Coty on marketing tenfold.

5. Skeptics 🐻: Short interest is 7.45% — traders betting Coty’s face powder is still covering blemishes.

💡💡💡 Curious about another deep oil exploration play?
Check our takes on UnitedHealth Group or even Oscar Health.

Outlook: FY26 and Beyond

• Q1 and Q2 FY26 expected to show continued revenue declines (-6% to -8%, then -3% to -5%).

• Return to growth projected in 2H26 📈.

• Blockbuster launches lined up (Burberry, Marc Jacobs makeup, Swarovski fragrance in 2027).

• Consumer Beauty focus: stronger fragrances, improved color cosmetics profitability.

• Digital + TikTok Shop: the company is chasing Gen Z noses and wallets.

If execution holds, Coty could stabilize, deleverage, and turn profitable again — all while selling more scents at every price tier from $5 mist to $500 designer parfum.

The Smell Test: Buy or Pass?

Coty’s story is simple: cheap stock, insider buys, big brands, high debt. If FY26 launches hit, margins expand, and debt falls, this could be one of those “ugly duckling to swan” investments.

But don’t expect a fairy tale overnight. This is a turnaround — expect volatility, mascara runs, and occasional bad hair days.

Valuation call:

• Speculative Value Play.

• CEO and CFO are in.

• Institutions hold tight.

• Short sellers lurk.

If you want exposure: start small, add if momentum builds.

Final Word

Coty isn’t just selling perfumes; it’s selling a turnaround story. Insiders are spritzing their own wallets, which is always a good sign. The question is whether Wall Street (and retail) will follow the scent trail.

💄 Perfume may fade, but insider conviction lingers.
📉 Shares are 90% below ATH.
💰 Cheap valuations suggest upside.
⚠️ Risks remain high.

⚠️ Disclaimer:

We can smell roses, but invest at your own risk. Beauty stocks can break hearts as easily as they sell fragrances.
Always DYOR, hold the FOMO, and don’t invest what you can’t afford to lose.

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