COTY INC.

Previous wording

Certain statements in this Form 10-Q are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, strategic planning, targets and outlook for future reporting periods (including the extent and timing of revenue, expense and profit trends and changes in operating cash flows and cash flows from operating activities and investing activities), the Company’s future operations and strategy (including the expected implementation and related impact of its strategic priorities), ongoing and future cost efficiency, optimization and restructuring initiatives and programs, expectations of the impact of inflationary pressures and the timing, magnitude and impact of pricing actions to offset inflationary costs, strategic transactions (including their expected timing and impact), the strategic review of the Company’s consumer beauty business, including its mass color cosmetics business and associated brands and the Company’s distinct Brazil business comprised of local Brazilian brands, and any transactions related thereto, use of proceeds from any transaction and the timing and outcome of the strategic review, expectations and/or plans with respect to joint ventures (including Wella and the timing and size of any related divestiture, distribution or return of capital), the Company’s capital allocation strategy and payment of dividends (including suspension of dividend payments and the duration thereof and any plans to resume cash dividends on common stock or to continue to pay dividends in cash on preferred stock) and expectations for stock repurchases, investments, plans and expectations with respect to licenses and/or portfolio changes, product launches, relaunches or rebranding (including the expected timing or impact thereof), plans for growth in certain categories, markets, channels and other white spaces, synergies, savings, performance, cost, timing and integration of acquisitions, future cash flows, liquidity and borrowing capacity (including any refinancing or deleveraging activities), timing and size of cash outflows and debt deleveraging, the timing and magnitude of any “true-up” payments in connection with our forward repurchase contracts and plans for settlement of such contracts, the timing and extent of any future impairments, and synergies, savings, impact, cost, timing and implementation of the Company’s ongoing strategic transformation agenda (including operational and organizational structure changes, operational execution and simplification initiatives, fixed cost reductions (including our recent fixed cost reduction plan), continued process improvements and supply chain changes), the impact, cost, timing and implementation of e-commerce and digital initiatives, the expected impact, cost, timing and implementation of sustainability initiatives (including progress, plans, goals and our ability to achi…

Excerpt shortened here; the source contains the full paragraph.

Current wording

Certain statements in this Form 10-Q are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, strategic planning, targets and outlook for future reporting periods (including the extent and timing of revenue, expense and profit trends and changes in operating cash flows and cash flows from operating activities and investing activities), the Company’s future operations and strategy (including the expected implementation and related impact of its strategic priorities), ongoing and future cost efficiency, optimization and restructuring initiatives and programs, expectations of the impact of inflationary pressures and the timing, magnitude and impact of pricing actions to offset inflationary costs, strategic transactions (including their expected timing and impact), the strategic review of the Company’s consumer beauty business, including its mass color cosmetics business and associated brands and the Company’s distinct Brazil business comprised of local Brazilian brands, and any transactions related thereto, use of proceeds from any transaction and the timing and outcome of the strategic review, expectations and/or plans with respect to joint ventures, the timing and size of any future distribution related to the Wella Distribution Rights (as defined below), the Company’s capital allocation strategy and payment of dividends (including suspension of dividend payments and the duration thereof and any plans to resume cash dividends on common stock or to continue to pay dividends in cash on preferred stock) and expectations for stock repurchases, investments, plans and expectations with respect to licenses and/or portfolio changes, product launches, relaunches or rebranding (including the expected timing or impact thereof), plans for growth in certain categories, markets, channels and other white spaces, synergies, savings, performance, cost, timing and integration of acquisitions, future cash flows, liquidity and borrowing capacity (including any refinancing or deleveraging activities), timing and size of cash outflows and debt deleveraging, the timing and magnitude of any “true-up” payments in connection with our forward repurchase contracts and plans for settlement of such contracts, the timing and extent of any future impairments, and synergies, savings, impact, cost, timing and implementation of the Company’s ongoing strategic transformation agenda (including operational and organizational structure changes, operational execution and simplification initiatives, fixed cost reductions (including our recent fixed cost reduction plan), continued process improvements and supply chain changes), the impact, cost, timing and implementation of e-commerce and digital initiatives, the expected impact, cost, timing and implementation of sustainability initiatives (including progress, plans, goals and our ability to …

Excerpt shortened here; the source contains the full paragraph.

Previous wording

•use of estimates and assumptions in preparing our financial statements, including with regard to revenue recognition, income taxes (including the expected timing and amount of the release of any tax valuation allowance), the assessment of goodwill, other intangible and long-lived assets for impairments, the market value of inventory, and the fair value of the equity investment;

Current wording

•use of estimates and assumptions in preparing our financial statements, including with regard to revenue recognition, income taxes (including the expected timing and amount of the release of any tax valuation allowance), the assessment of goodwill, other intangible and long-lived assets for impairments, and the market value of inventory;

Previous wording

•our relationship with KKR, whose affiliate KKR Bidco, is an investor in Rainbow JVCO LTD and subsidiaries (together, “Wella” or the “Wella Company”) following the sale of a majority stake in our Professional and Retail Hair business, including the Wella, Clairol, OPI and ghd brands (together, the “Wella Business”), and any related conflicts of interest or litigation;

Current wording

•our relationship with KKR, whose affiliates are investors in Rainbow JVCO LTD and subsidiaries (together, “Wella” or the “Wella Company”) following the sale of a majority stake in our Professional and Retail Hair business, including the Wella, Clairol, OPI and ghd brands (together, the “Wella Business”) and the subsequent sale of our remaining Wella stake, any related conflicts of interest or litigation. and the timing and terms of any future sale or initial public offering of Wella;

Previous wording

We are one of the world’s largest beauty companies, with an iconic portfolio of brands across fragrance, color cosmetics, and skin and body care. Our brands empower people to express themselves freely, creating their own visions of beauty; and we are committed to protecting the planet. We have sharpened our priorities to capitalize on structural tailwinds in the fragrance market. We are leveraging our leadership in fragrance innovation, licensing, and manufacturing to expand across price points, from mass to ultra-premium and across scenting formats.

Current wording

We are one of the world’s largest beauty companies, with an iconic portfolio of brands across fragrance, color cosmetics, and skin and body care. Our brands empower people to express themselves freely, creating their own visions of beauty; and we are committed to protecting the planet.

Previous wording

Recent changes in U.S. and international trade policies—particularly tariff increases—and the ongoing uncertainty surrounding such policies may present challenges to our business operations and financial condition. These challenges may include supply chain disruptions and commodity price volatility, resulting in increases in our cost of goods sold. Under the current tariff framework, the biggest areas of potential challenges for us are prestige fragrances shipped to the U.S. from our Barcelona plant, and the sourcing of various components and marketing materials from China. In response, we have evaluated more diversified sourcing strategies, strategic pricing adjustments and cost-reduction initiatives to help offset these pressures and protect our profitability. We are optimizing our supply chain to enhance resilience and agility in response to changing tariff environments. We have successfully transitioned mass fragrance production—including key brands such as Adidas, Origen, and Nautica—as well as fragrance mists to our U.S. manufacturing site. Additional transfers of entry-level prestige fragrance products are planned for early in the third quarter of fiscal 2026, further optimizing U.S. capacity.

Current wording

Recent changes in U.S. and international trade policies—particularly tariff increases—and the ongoing uncertainty surrounding such policies may present challenges to our business operations and financial condition. These challenges may include supply chain disruptions and commodity price volatility, resulting in increases in our cost of goods sold. Under the current tariff framework, the biggest areas of potential challenges for us are prestige fragrances shipped to the U.S. from our Barcelona plant, and the sourcing of various components and marketing materials from China. In response, we have evaluated more diversified sourcing strategies, strategic pricing adjustments and cost-reduction initiatives to help offset these pressures and protect our profitability. We are optimizing our supply chain to enhance resilience and agility in response to changing tariff environments. We have successfully transitioned mass fragrance production, as well as fragrance mists, to our U.S. manufacturing site. Additional entry-level prestige fragrance products may be transferred to further optimize U.S. capacity.

Previous wording

We currently estimate that our operating results will be impacted by approximately $35.0 in costs related to tariff increases, after mitigating actions, through the first quarter of fiscal 2027. Of this amount, approximately $30.0 is expected to be reflected in our fiscal 2026 operating results, with the remaining amount of approximately $5.0 expected to be reflected in the first quarter of fiscal 2027. In the first three months of fiscal 2026, approximately $5.0 of net tariff costs are reflected in our operating results. Despite our efforts, reductions in consumer confidence and discretionary spending could impact demand for our products and negatively affect our sales. We are closely monitoring developments, evaluating potential impacts, and proactively taking steps to mitigate adverse effects on our business.

Current wording

We currently estimate that our operating results will be impacted by approximately $33.0 in costs related to tariff increases, after mitigating actions, through the first quarter of fiscal 2027. Of this amount, approximately $28.0 is expected to be reflected in our fiscal 2026 operating results, with the remaining amount of approximately $5.0 expected to be reflected in the first quarter of fiscal 2027. In the first half of fiscal 2026, approximately $14.0 of net tariff costs are reflected in our operating results. Despite our efforts, reductions in consumer confidence and discretionary spending could impact demand for our products and negatively affect our sales. We are closely monitoring developments, evaluating potential impacts, and proactively taking steps to mitigate adverse effects on our business.

Previous wording

•Geographic Regions: Net revenue in the Americas declined by a mid-single digit percentage during first three months fiscal 2026, driven by negative market trends in Brazil and the phasing and trade investment behind new Prestige fragrance launches. Net revenue from EMEA decreased by a mid-single digit percentage due to negative market trends across most European markets. Net revenue in the Asia Pacific region declined by a high-single digit percentage, impacted by a decline in value distribution sales.

Current wording

Geographic Regions: In the first half of fiscal 2026, compared to the prior-year period, net revenue in the Americas declined by a mid single-digit percentage, driven primarily by weak demand in the U.S. color cosmetics market. During the same period, net revenue in EMEA decreased by a low single-digit percentage, reflecting negative market trends across many European markets, and net revenue in Asia Pacific declined by a mid single-digit percentage.

Previous wording

We expect that our reported net revenue for the second quarter of fiscal 2026 will be roughly flat versus the prior year, which includes an estimated low to mid-single digit percentage benefit from foreign exchange. We anticipate that our second quarter fiscal 2026 gross margin will be pressured as a result of lower sales as well as the net impact from tariffs, with some easing in the second half of fiscal 2026 as a result of mitigation efforts. We are re-accelerating our cost reduction efforts to deliver savings of approximately $80.0 in fiscal 2026. We expect that our reported net revenue for the second half of fiscal 2026 will return to growth versus the prior year, supported by major launches across both our Prestige and Consumer Beauty segments and more favorable comparisons.

Current wording

We expect that our reported net revenue for the third quarter of fiscal 2026 will decline compared to the prior year, which includes an estimated low to mid-single digit percentage benefit from foreign exchange. We anticipate that our third quarter fiscal 2026 gross margin will be pressured as a result of lower net sales as well as the net impact from tariffs. We are re-accelerating our cost reduction efforts to deliver savings of approximately $80.0 in fiscal 2026.

Previous wording

•Depreciation and Adjusted depreciation: Our adjusted operating income excludes the impact of accelerated depreciation for certain restructuring projects that affect the expected useful lives of Property, Plant and Equipment, as such charges vary significantly based on the size and timing of the programs. Further, we have excluded adjusted depreciation, which represents depreciation expense net of accelerated depreciation charges, from our adjusted EBITDA. Our management believes that the adjustment of these items supplements the GAAP information with a measure that can be used to assess the sustainability of our operating performance.

Current wording

•Depreciation and Adjusted depreciation: Our adjusted operating income excludes the impact of accelerated depreciation for certain restructuring projects that affect the expected useful lives of Property, Plant and Equipment, as such charges vary significantly based on the size and timing of the programs. Further, we have excluded adjusted depreciation, which represents depreciation expense net of accelerated depreciation charges, from our adjusted

Previous wording

•Other (income) expense: We have excluded the impact of pension curtailment (gains) and losses and pension settlements as such events are triggered by our restructuring and other business realignment activities and the amount of such charges vary significantly based on the size and timing of the programs. Further, we have excluded the change in fair value of the investment in Wella, as well as expenses related to potential or actual sales transactions reducing equity investments, as our management believes these unrealized (gains) and losses do not reflect our underlying ongoing business, and the adjustment of such impact helps investors and others compare and analyze performance from period to period. Such transactions do not reflect our operating results and we have excluded the impact as our management believes that the adjustment of these items supplements the GAAP information with a measure that can be used to assess the sustainability of our operating performance.

Current wording

•Other (income) expense: We have excluded the impact of pension curtailment (gains) and losses and pension settlements as such events are triggered by our restructuring and other business realignment activities and the amount of such charges vary significantly based on the size and timing of the programs. Further, we have excluded realized and unrealized gains and losses on the investment in Wella, as well as expenses related to potential or actual sales transactions reducing equity investments, as our management believes these gains and losses do not reflect our underlying ongoing business, and the adjustment of such impact helps investors and others compare and analyze performance from period to period. Such transactions do not reflect our operating results and we have excluded the impact as our management believes that the adjustment of these items supplements the GAAP information with a measure that can be used to assess the sustainability of our operating performance.

Previous wording

In the three months ended September 30, 2025, net revenues from the Consumer Beauty segment decreased 9%, or $49.7, to $507.7 from $557.4 in the three months ended September 30, 2024, reflecting a decrease in unit volume of 10% (primarily driven by negative performance of our brands and decelerating market trends in Brazil), negative price and mix impact of 1%, partially offset by a positive foreign currency exchange translation impact of 2% (primarily driven by the weakening of the U.S. dollar versus the Euro year over year). The decrease in net revenues primarily reflects:

Current wording

In the three months ended December 31, 2025, net revenues from the Consumer Beauty segment decreased 2%, or $8.8, to $545.0 from $553.8 in the three months ended December 31, 2024, reflecting a negative price and mix impact of 7% (primarily driven by mass fragrance and color cosmetics), an increase in unit volume of 1%, partially offset by a positive foreign currency exchange translation impact of 4% (primarily driven by the weakening of the U.S. dollar versus the Brazilian Real and the Euro). The decrease in net revenues primarily reflects:

Previous wording

•Mass fragrance sales declines of $18.3, primarily due to negative performance of our brands in Europe and less innovation in the current period;

Current wording

•Mass fragrance sales declines of $3.2.

Previous wording

In the three months ended September 30, 2025, cost of sales decreased 3%, or $16.5, to $560.4 from $576.9 in the three months ended September 30, 2024. Cost of sales as a percentage of net revenues increased to 35.5% in the three months ended September 30, 2025 from 34.5% in the three months ended September 30, 2024, resulting in a gross margin decrease of approximately 100 basis points, primarily reflecting:

Current wording

In the three months ended December 31, 2025, cost of sales increased 9%, or $52.3, to $608.0 from $555.7 in the three months ended December 31, 2024. Cost of sales as a percentage of net revenues increased to 36.2% in the three months ended December 31, 2025 from 33.3% in the three months ended December 31, 2024, resulting in a gross margin decrease of approximately 290 basis points, primarily reflecting:

Previous wording

(i)approximately 60 basis points, primarily due to an increase in manufacturing and material costs as a percentage of net revenues; and

Current wording

(i)approximately 160 basis points, primarily due to an increase in manufacturing and material costs as a percentage of net revenues;

Previous wording

In the three months ended September 30, 2025, selling, general and administrative expenses decreased 2%, or $14.5, to $793.5 from $808.0 in the three months ended September 30, 2024. Selling, general and administrative expenses as a percentage of net revenues increased to 50.3% in the three months ended September 30, 2025 from 48.3% in the three months ended September 30, 2024, or approximately 200 basis points. This increase primarily reflects:

Current wording

In the three months ended December 31, 2025, selling, general and administrative expenses increased 6%, or $45.2, to $842.5 from $797.3 in the three months ended December 31, 2024. Selling, general and administrative expenses as a percentage of net revenues increased to 50.2% in the three months ended December 31, 2025 from 47.7% in the three months ended December 31, 2024, or approximately 250 basis points. This increase primarily reflects:

Previous wording

(i)30 basis points due to favorable transactional impact from our exposure to foreign currency as a percentage of net revenues.

Current wording

(v)20 basis points due to unfavorable transactional impact from our exposure to foreign currency as a percentage of net revenues.

Previous wording

In the three months ended September 30, 2025, operating income was $185.0 compared to income of $237.8 in the three months ended September 30, 2024. Operating income margin, decreased to 11.7% in the three months ended September 30, 2025 as compared to operating income margin of 14.2% in the three months ended September 30, 2024. The decrease in operating margin is primarily driven by an increase in advertising and consumer promotional costs as a percentage of net revenues (approximately 110 basis points), an increase in cost of goods sold as a percentage of net revenues (approximately 100 basis points), an increase in fixed costs as a percentage of net revenues (approximately 100 basis points), partially offset by a decrease in amortization expense as a percentage of net revenues (approximately 40 basis points). In addition, a greater proportion of total sales came from higher margin Prestige brands in the current period which positively benefited our operating margin.

Current wording

In the three months ended December 31, 2025, operating income was $148.2 compared to income of $268.2 in the three months ended December 31, 2024. Operating income margin decreased to 8.8% in the three months ended December 31, 2025 as compared to operating income margin of 16.1% in the three months ended December 31, 2024. The decrease in operating margin is primarily driven by an increase in cost of goods sold (approximately 290 basis points), an increase in amortization expense as a percentage of net revenues (approximately 160 basis points), an unfavorable impact due to an early license termination as a percentage of net revenue (approximately 80 basis points), an increase in in advertising and consumer promotional costs as a percentage of net revenues (approximately 50 basis points), and an increase in operational accruals as a percentage of net revenues (approximately 50 basis points).

Previous wording

In the three months ended September 30, 2025, operating income for Prestige was $208.9 compared to income of $241.5 in the three months ended September 30, 2024. Operating margin decreased to 19.5% of net revenues in the three months ended September 30, 2025 as compared to 21.7% in the three months ended September 30, 2024, driven by an increase in advertising and consumer promotional costs (approximately 170 basis points), an increase in cost of goods sold as a percentage of net revenues (approximately 60 basis points), an increase in fixed costs as a percentage of net revenues (approximately 50 basis points), partially offset by a decrease in amortization expense as a percentage of net revenues (approximately 60 basis points).

Current wording

In the three months ended December 31, 2025, operating income for Prestige was $181.9 compared to income of $222.3 in the three months ended December 31, 2024. Operating margin decreased to 16.0% of net revenues in the three months ended December 31, 2025 as compared to 19.9% in the three months ended December 31, 2024, driven by an increase in amortization expense as a percentage of net revenues (approximately 240 basis points), an increase in cost of goods sold as a percentage of net revenues (approximately 150 basis points), partially offset by a decrease in fixed costs as percentage of net revenue (approximately 60 basis points).

Previous wording

In the three months ended September 30, 2025, the operating loss for Corporate was $16.2 compared to a loss of $17.7 in the three months ended September 30, 2024, as described under “Adjusted Operating Income for Coty Inc.” below. The decrease in the operating loss for Corporate was primarily driven by a $2.5 decrease in stock-based compensation expense, partially offset by a $1.0 increase in restructuring and other business realignment costs.

Current wording

In the three months ended December 31, 2025, the operating loss for Corporate was $52.0 compared to a loss of $18.2 in the three months ended December 31, 2024, as described under “Adjusted Operating Income for Coty Inc.” below. The increase in the operating loss for Corporate was primarily driven by costs of $19.7 related to an early license termination.

Previous wording

(a)See a reconciliation of reported net income to operating income (loss) to adjusted operating income (loss) and adjusted EBITDA for Coty Inc. and reconciliations of segment operating income (loss) to segment adjusted operating income (loss) and segment adjusted EBITDA for the Prestige, Consumer Beauty and Corporate segments with a description of the adjustments under “Net Income, Adjusted Operating Income and Adjusted EBITDA for Coty Inc.” and “Segment Operating Income (Loss), Segment Adjusted Operating Income (Loss) and Segment Adjusted EBITDA”, below. All adjustments are reflected in Corporate, except for amortization and asset impairment charges on goodwill, indefinite-lived intangible assets, and finite-lived intangible assets, which are reflected in the Prestige and Consumer Beauty segments.

Current wording

(a)See a reconciliation of reported net income to operating income (loss) to adjusted operating income (loss) and adjusted EBITDA for Coty Inc. and reconciliations of segment operating income (loss) to segment adjusted operating income (loss) and segment adjusted EBITDA for the Prestige, Consumer Beauty and Corporate segments with a description of the adjustments under “Net (Loss) Income, Adjusted Operating Income and Adjusted EBITDA for Coty Inc.” and “Segment Operating Income (Loss), Segment Adjusted Operating Income (Loss) and Segment Adjusted EBITDA”, below. All adjustments are reflected in Corporate, except for amortization and asset impairment charges on goodwill, indefinite-lived intangible assets, and finite-lived intangible assets, which are reflected in the Prestige and Consumer Beauty segments.

Previous wording

In the three months ended September 30, 2025, adjusted operating income decreased $63.1 to $240.5 from $303.6 in the three months ended September 30, 2024. Adjusted operating margin decreased to 15.2% of net revenues in the three months ended September 30, 2025 from 18.2% in the three months ended September 30, 2024. In the three months ended September 30, 2025, adjusted EBITDA decreased $64.0 to $296.1 from $360.1 in the three months ended September 30, 2024. Adjusted EBITDA margin decreased to 18.8% of net revenues in the three months ended September 30, 2025 from 21.5% in the three months ended September 30, 2024.

Current wording

In the three months ended December 31, 2025, adjusted operating income decreased $59.4 to $274.3 from $333.7 in the three months ended December 31, 2024. Adjusted operating margin decreased to 16.3% of net revenues in the three months ended December 31, 2025 from 20.0% in the three months ended December 31, 2024. In the three months ended December 31, 2025, adjusted EBITDA decreased $60.5 to $330.2 from $390.7 in the three months ended December 31, 2024. Adjusted EBITDA margin decreased to 19.7% of net revenues in the three months ended December 31, 2025 from 23.4% in the three months ended December 31, 2024.

Previous wording

We incurred approximately $10.0 of cash costs life-to-date related to our previously announced Fixed Cost Reduction Plan as of September 30, 2025, which have been recorded in Corporate.

Current wording

We incurred approximately $15.0 of cash costs life-to-date related to our previously announced Fixed Cost Reduction Plan as of December 31, 2025, which have been recorded in Corporate.

Previous wording

•We incurred a credit in restructuring costs of $1.0, which is included in the Condensed Consolidated Statements of Operations; and

Current wording

•We incurred Restructuring costs of $5.8, which is included in the Condensed Consolidated Statements of Operations; and

Previous wording

In the three months ended September 30, 2024, we incurred restructuring and other business structure realignment costs of $0.7, primarily related to the Current Restructuring Actions, included in the Condensed Consolidated Statements of Operations.

Current wording

•We incurred in Restructuring costs of $1.4, primarily related to the Restructuring Actions, included in the Condensed Consolidated Statements of Operations; and

Previous wording

In the three months ended September 30, 2025, stock-based compensation was $14.5 as compared with $17.0 in the three months ended September 30, 2024.

Current wording

In the three months ended December 31, 2025, stock-based compensation was $18.0 as compared with $15.5 in the three months ended December 31, 2024.

Previous wording

In the three months ended September 30, 2025, adjusted depreciation expense of $28.6 and $27.0 was reported in the Prestige and Consumer Beauty segments, respectively. In the three months ended September 30, 2024, adjusted depreciation expense of $27.9 and $28.6 was reported in the Prestige and Consumer Beauty segments, respectively.

Current wording

In the three months ended December 31, 2025, adjusted depreciation expense of $27.9 and $28.0 was reported in the Prestige and Consumer Beauty segments, respectively. In the three months ended December 31, 2024, adjusted depreciation expense of $28.2 and $28.8 was reported in the Prestige and Consumer Beauty segments, respectively.

Previous wording

In the three months ended September 30, 2025, net interest expense was $46.6 as compared with $61.8 in the three months ended September 30, 2024. The decrease in interest expense is primarily due to lower average interest rates primarily reflecting positive impact from cross-currency swaps in reducing interest expense, as well as due to gains on foreign exchange forward contracts on the Euro as compared to losses in the prior year.

Current wording

In the three months ended December 31, 2025, net interest expense was $41.4 as compared with $54.4 in the three months ended December 31, 2024. The decrease in interest expense is primarily due to foreign exchange gains as compared to losses in the prior year, as well as due to lower average interest rates primarily reflecting positive impact from cross-currency swaps in reducing interest expense.

Previous wording

In the three months ended September 30, 2025, other expense was $31.3 as compared with other expense of $43.3 in the three months ended September 30, 2024. The decrease in Other expense of $12.0 is primarily due to lower net losses on forward repurchase contracts of $7.5 compared to the prior year period.

Current wording

In the three months ended December 31, 2025, other expense was $275.4 as compared with other expense of $157.2 in the three months ended December 31, 2024. The increase in Other expense of $118.2 is primarily due to loss on sale of equity investments of $201.9 partially offset by lower net losses on forward repurchase contracts of $75.6 compared to the prior year period.

Previous wording

The effective income tax rate for the three months ended September 30, 2025 and 2024 was 30.9% and 31.7%, respectively. The decrease in the effective tax rate was primarily attributable to lower limitations on the deductibility of executive stock compensation and interest expense in the current period.

Current wording

The effective income tax rate for the three months ended December 31, 2025 and 2024 was 31.1% and 45.9%, respectively. The decrease in the effective tax rate was primarily attributable to the release of uncertain tax positions in the current period and a higher limitation on the deductibility of interest expense in the prior period.

Previous wording

The effective tax rate of 30.9% for the three months ended September 30, 2025 was higher than the Federal statutory rate of 21% primarily due to the limitation on the deductibility of interest expense.

Current wording

The effective tax rate of 31.1% for the three months ended December 31, 2025 was higher than the Federal statutory rate of 21% primarily due to the limitation on the deductibility of interest expense and executive stock compensation, partially offset by the benefit recognized on the Company's sale of its remaining interest in Wella and the release of uncertain tax positions.

Previous wording

The effective tax rate of 31.7% in the three months ended September 30, 2024 was higher than the statutory tax rate of 21% primarily due to the limitation on the deductibility of executive stock compensation and the limitation on the deductibility of interest expense.

Current wording

The effective tax rate of 45.9% in the three months ended December 31, 2024 was higher than the statutory tax rate of 21% primarily due to the limitation on the deductibility of executive stock compensation and the limitation on the deductibility of interest expense as well as the impact of fair value losses related to the investment in Wella taxed at a rate below the statutory rate of 21%.

Previous wording

(d)For the three months ended September 30, 2024, this primarily represents recovery of previously written-off non-income tax credits and the amortization of basis differences in certain equity method investments.

Current wording

(d)For the three months ended December 31, 2025, this primarily represents recovery of previously written-off non-income tax credits and the amortization of basis differences in certain equity method investments. For the three months ended December 31, 2024, this primarily represents recovery of previously written-off non-income tax credits and the amortization of basis differences in certain equity method investments.

Previous wording

The adjusted effective tax rate was 27.5% for the three months ended September 30, 2025 compared to 28.9% for the three months ended September 30, 2024. The difference is primarily due to the loss on forward repurchase contracts having a higher proportional impact in the prior period.

Current wording

The adjusted effective tax rate was 16.8% for the three months ended December 31, 2025 compared to 28.1% for the three months ended December 31, 2024. The difference is primarily due to the release of uncertain tax positions in the current period and a higher limitation on the deductibility of interest expense in the prior period.

Previous wording

Net income attributable to Coty Inc. was $67.9 in the three months ended September 30, 2025 as compared to net income of $82.9 in the three months ended September 30, 2024. The decrease in income was primarily driven by lower gross profit of $77.8, partially offset by lower interest expense of $15.2 in the current period, lower selling, general and administrative expenses of $14.5, lower provision for income taxes of $8.9, lower amortization expense of 8.8, and lower net losses on forward repurchase contracts of $7.5.

Current wording

Net loss attributable to Coty Inc. was $123.6 in the three months ended December 31, 2025 as compared to net income of $23.7 in the three months ended December 31, 2024. The net loss was primarily driven by the realized loss on the sale of the Wella investment of $201.9, lower gross profit of $43.6, an increase in selling, general, and administrative expenses of $45.2, an increase in amortization expense of $26.8, partially offset by an increase in the benefit for income taxes of $78.4, and lower interest expense of $13.0 in the current period.

Previous wording

(a)Adjusted Diluted EPS is adjusted by the effect of dilutive securities. For the three months ended September 30, 2025 and 2024, no dilutive shares of the Forward Repurchase Contracts were included in the computation of adjusted diluted EPS as their inclusion would be anti-dilutive. Accordingly, we did not reverse the impact of the fair market value losses for contracts with the option to settle in shares or cash of $26.5 and $24.6, respectively. For the three months ended September 30, 2025, Convertible Series B Preferred Stock (23.7 million weighted average dilutive shares) was anti-dilutive. Accordingly, we excluded these shares from the diluted shares and did not adjust the earnings for the related dividend of $3.3. For the three months ended September 30, 2024, as the Convertible Series B Preferred Stock was dilutive, an adjustment to reverse the impact of the preferred stock dividends of $3.3 was required.

Current wording

(a)Adjusted Diluted EPS is adjusted by the effect of dilutive securities. For the three months ended December 31, 2025 and 2024, no dilutive shares of the Forward Repurchase Contracts were included in the computation of adjusted diluted EPS as their inclusion would be anti-dilutive. Accordingly, we did not reverse the impact of the fair market value losses for contracts with the option to settle in shares or cash of $38.6 and $96.5, respectively. For the three months ended December 31, 2025 and 2024, Convertible Series B Preferred Stock (23.7 million weighted average dilutive shares) was anti-dilutive. Accordingly, we excluded these shares from the diluted shares and did not adjust the earnings for the related dividend of $3.3, respectively.

Previous wording

In the three months ended September 30, 2025, net revenues decreased 6%, or $94.3, to $1,577.2 from $1,671.5 in the three months ended September 30, 2024, reflecting a decrease in unit volume of 10% (primarily driven by declines from the Consumer Beauty color cosmetics and body care brands), partially offset by positive foreign currency exchange translation impact of 2% (primarily driven by the weakening of the U.S. dollar versus the Euro year over year) and positive price and mix impact of 2% (primarily due to a higher proportion of total sales coming from higher priced Prestige brands). The overall decrease in net revenues reflects declines within fragrances across both our Prestige and Consumer Beauty segments. Within Prestige, fragrance sales declines are primarily due to customers working down high trade inventory levels along with decelerating market trends in most major markets. Within Consumer Beauty, fragrance declines are primarily due to negative performance of our brands and less innovation despite positive market trends across mass price points. The decline can also be attributed to color cosmetics— primarily due to the negative performance of our brands in most European markets and negative market trends in most major markets. Net revenues declined across all regions. Digital and e-commerce channel sales declines also contributed to the decrease in net revenues.

Current wording

In the six months ended December 31, 2025, net revenues decreased 3%, or $85.6, to $3,255.8 from $3,341.4 in the six months ended December 31, 2024, reflecting a decrease in unit volume of 4% (primarily due to color cosmetics from Covergirl as a result of negative market trends in the United States) and a negative price and mix impact of 1% (primarily due to increased price competition in Brazil), partially offset by a positive foreign currency exchange translation impact of 3% (primarily driven by the weakening of the U.S. dollar versus the Brazilian Real and the Euro). The overall decrease in net revenues reflects declines within both Consumer Beauty and Prestige. Declines within Consumer Beauty are primarily driven by negative market trends in color cosmetics in the United States and in some European markets. The decline can also be attributed to mass body care in Brazil — primarily due to competitive pricing action in the Brazilian deodorant market. Declines in Prestige are primarily driven by Prestige fragrances as a result of reduced certain distribution channel sales. These declines were partially offset by growth in our Prestige and mass skincare categories. Net revenues declined across all regions despite growth in Asia travel retail. Digital and e-commerce channel sales declines also contributed to the decrease in net revenues.

Previous wording

•Prestige cosmetic sales declines of $3.8; and

Current wording

•Prestige cosmetic sales declines of $1.1.

Previous wording

•Mass bodycare sales declines of $9.3, primarily due to sales volumes declines from Monange andadidasin Brazil due to competitive pricing action in the deodorant market; and

Current wording

•Mass body care sales declines of $8.1, primarily due to declines in sales volumes from adidas and Monange in Brazil due to competitive pricing action in the deodorant market.

Previous wording

This decrease in gross margin was driven by lower net revenues in the current period—reflecting higher discounts and promotions. Although we achieved improvements in manufacturing efficiency, productivity, and procurement cost optimization, these benefits are offset by the impact of the reduced net revenue base.

Current wording

This decrease in gross margin was driven by lower net revenues in the current period—reflecting higher discounts and promotions. Although we achieved improvements in manufacturing efficiency, productivity, and procurement cost optimization, these benefits are offset by the impact of the reduced net revenue base. Tariffs also negatively impacted our gross margin during the current period.

Previous wording

In the three months ended September 30, 2025, amortization expense decreased to $39.3 from $48.1 in the three months ended September 30, 2024. The decrease in amortization expense is primarily related to completed amortization term for certain license agreements and the termination of the KKW Collaboration Agreement in the previous fiscal year. In the three months ended September 30, 2025, amortization expense of $30.1 and $9.2 was reported in the Prestige and Consumer Beauty segments, respectively. In the three months ended September 30, 2024, amortization expense of $38.2 and $9.9 was reported in the Prestige and Consumer Beauty segments, respectively.

Current wording

In the six months ended December 31, 2025, amortization expense increased to $113.4 from $95.4 in the six months ended December 31, 2024. The increase was primarily driven by accelerated amortization related to a brand license, partially offset by completed amortization term for certain license agreements and the termination of the KKW Collaboration Agreement in the previous fiscal year. In the six months ended December 31, 2025, amortization expense of $95.1 and $18.3 was reported in the Prestige and Consumer Beauty segments, respectively. In the six months ended December 31, 2024, amortization expense of $75.9 and $19.5 was reported in the Prestige and Consumer Beauty segments, respectively.