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Coty Stock Plunges Over 20% After Cosmetics Maker Reports Surprise Loss

1. Coty reported a quarterly loss of $72.1 million, surprising analysts. 2. Like-for-like sales declined 9% year-over-year, weaker than expected. 3. Coty expects sales to drop further in upcoming quarters, returning positive later. 4. Shares plummeted nearly 22% in response to the disappointing guidance. 5. The cosmetics market is facing softness in U.S. demand and competition.

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FAQ

Why Very Bearish?

Coty's unexpected loss and negative guidance signal ongoing challenges. Historically, such sharp declines in earnings forecasts lead to heightened investor concern.

How important is it?

The article signals significant operational issues for Coty, affecting investor confidence and potential price movements.

Why Short Term?

Immediate financial performance issues are driving perceptions. Recovery is hoped in the second half of the fiscal year, but current signals are negative.

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