Coty Inc. reported a surprise adjusted loss of $0.05 a share for the fourth quarter of fiscal 2025, missing analysts’ expectation of a small profit. Net revenue slipped 8.1% from a year earlier to $1.25 billion but was slightly ahead of forecasts, supported by resilient prestige-fragrance sales. The New York-listed beauty group posted a net loss of $72.1 million for the period. Management warned the downturn will deepen in the new financial year. Like-for-like sales are projected to fall 6%–8% in the September quarter and a further 3%–5% in the December quarter, before a hoped-for return to growth in the second half of fiscal 2026. Chief Financial Officer Laurent Mercier cited weaker U.S. demand, retailers’ inventory reductions, the recently enacted 145% U.S. tariff on Chinese goods and heavier promotions in mass cosmetics. Coty plans to raise U.S. premium-fragrance prices and shift some production onshore to mitigate tariff costs, while new product launches are scheduled for the holiday season. Investors reacted sharply to the bleaker outlook. Coty’s shares fell about 11% in late trading and extended losses to roughly 24% in pre-market deals, putting the stock on course for its steepest one-day decline since the early stages of the pandemic. The warning dragged on sentiment across the beauty sector, adding pressure to rivals that have also flagged softer consumer spending.