Coty Inc. shares plummeted 11.76% in after-hours trading on Thursday, following the release of the company's second-quarter fiscal 2026 results and a decision to withdraw its full-year financial guidance.

The beauty products maker reported adjusted earnings per share of $0.14 for the quarter, missing analysts' expectations of $0.18. While revenue of $1.68 billion slightly exceeded estimates, the company disclosed a 3% decline in like-for-like net revenue for 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.