Coty Inc. shares fell sharply in pre-market trading, extending losses from the previous session after the beauty products maker reported disappointing second-quarter results and withdrew its full-year financial guidance.

The company reported adjusted earnings per share of $0.14 for the quarter ended December 31, 2025, missing analysts' expectations of $0.18. While revenue of $1.68 billion slightly exceeded estimates, like-for-like net revenue declined 3% during the period. New interim CEO Markus Strobel described Coty's financial performance over the past 18 months as "disappointing" and cited the complex beauty market backdrop and leadership transition as reasons for withdrawing prior FY26 guidance for EBITDA and free cash flow.

Coty anticipates third-quarter like-for-like revenues to decline by a mid-single-digit percentage, primarily due to weakening in its Consumer Beauty division. The company forecasts Q3 adjusted EBITDA to fall to $100-$110 million, well below the average analyst forecast of $201.6 million, with gross margins expected to decline by 200-300 basis points year-over-year. The company is implementing a new strategic framework called "Coty. Curated." to drive sharper focus on core brands while continuing its strategic review of the Consumer Beauty business.