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Coty COTY Max Factor Trademarks — Asset impairment charges

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Other financials

Income statement

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Revenue$1.3B-1.3%
Gross profit$791.9M-4.9%
Operating income-$372.0M-32.7%
Net income-$408.1M-0.6%
EPS (diluted)-$0.470.0%

Balance sheet

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Cash & equivalents$270.2M+4.2%
Total debt$3.5B-16.4%
Total equity$3.1B-11.5%
Total assets$10.2B-10.8%

Cash flow

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Operating cash flow$559.7M+20.5%
CapEx$45.6M-0.7%
Free cash flow$513.1M+22.5%

Valuation

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Market cap$2.48B-39.7%
Enterprise value$5.69B-30.2%
P/S0.4×-0.3×

Profitability

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Gross margin63.2%-2.0pp
Operating margin-0.4%-4.7pp
Net margin-9.2%
FCF margin-6.6%

Returns & leverage

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Return on equity-16.2%
Debt / equity1.1×-0.1×
Current ratio0.8×0.0×

Where this comes from

Reported directly by Coty in its filing.

Tagged under the XBRL concept us-gaap:AssetImpairmentCharges.

The source filing: Coty’s 10-K, filed August 21, 2025.

Filed
Aug 21, 2025
Fiscal year
FY2025
Accession
0001024305-25-000030

During the third quarter of fiscal 2025, the Company concluded that weakening demand in the color cosmetics market, particularly in the United States and Europe, combined with broader macroeconomic disruptions, signaled a deterioration in business climate. As a result of these adverse factors, during the third quarter of fiscal 2025, the Company recognized asset impairment charges of $84.0, $61.0, and $24.9 related to the Max Factor, CoverGirl and Bourjois trademarks within the Consumer Beauty Segment and $42.9 related to the Philosophy trademark within the Prestige Segment. These impairments were recorded as Asset impairment charges in the Consolidated Statements of Operations.

Item 16. Form 10-K Summary.

FAQ

What is Coty's max factor trademarks — asset impairment charges?
Coty (COTY) reported max factor trademarks — asset impairment charges of $84M in Q2 2025.
What does max factor trademarks — asset impairment charges mean?
This metric represents the non-cash expense recognized when the carrying value of the Max Factor brand intangible assets exceeds their estimated fair market value. It serves as a critical indicator of declining brand equity, shifting consumer preferences in the color cosmetics market, or strategic shifts in portfolio management. Investors monitor this charge to assess the long-term recoverability of investments in legacy beauty brands and the potential for future earnings volatility.

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