U.S. Beauty Stocks Plunge 5%... $100 Million in Market Cap Vanishes in a Day

Coty Inc. (COTY) closed at $2.18 on July 6 on the New York Stock Exchange, down 5.20% from the previous day, with trading volume of approximately 6.42 million shares.

The company’s market capitalization stood at about $1.92 billion (roughly KRW 3 trillion), implying a one-day loss of around $95 million (about KRW 150 billion).

In its third quarter of fiscal 2026, Coty reported revenue of $1.282 billion (approximately KRW 1.9 trillion) but recorded an operating loss of $372 million (around KRW 580 billion) due to impairment charges in its consumer beauty segment.

Amid subdued growth, Fitch Ratings affirmed Coty’s credit rating at BB+ while revising the outlook to negative. Coty is conducting a strategic review that includes possible divestiture or spin-off of its consumer beauty business, including CoverGirl.

Coty is a U.S.-based global beauty company that focuses on fragrances and color cosmetics. It concentrates on prestige fragrance brands while also owning mass-market labels such as CoverGirl, Rimmel and Max Factor.

A significant share of Coty’s revenue comes from fragrances, and the company has recently been streamlining its non-core consumer beauty operations to refocus its portfolio on premium fragrances and luxury beauty.