Coty Inc.’s shares were among the highest-profile victims, tumbling more than 15% in extended trading. This drop came on the heels of the company’s prediction of a poor first half performance for fiscal year 2026. The cosmetics behemoth announced a stunning, record-breaking $1.25 billion in revenue for the most recent quarter. This figure beat analysts’ predictions of $1.20 billion, reported LSEG. Highly negative influencer sentiment appeared due to management’s admonitions about slowing sales and profit growth.
By comparison, shares of Walmart, the second largest retailer in the U.S., fell more than 4%. Even as the company announced in its last quarterly sales figures above Wall Street’s expectations, it missed on earnings. Still, Walmart increased its full-year earnings and sales forecast, even as it coped with higher costs from tariffs that climbed higher on more goods.
The lackluster showing of these tech titans played a big part in swinging the stock market. Nvidia, the biggest stock in America by market value, fell just over one tenth of a percent at 0.14%. Even with this decline, it’s still holding extraordinary market capitalization of nearly $4.3 trillion. Apple’s stock fell by 1.97%, and Microsoft’s shares decreased by 0.79%.
Coty’s top management are looking for a turnaround in the back half of fiscal year 2026. They attribute this optimism largely to new product introductions and strong plans to avoid tariffs.
“The days of stupidity are over in the USA!!!” – Donald Trump
It’s not just corporate earnings reports in the crosshairs. On the economic front, indicators showed an increase in jobless claims, reaching 235,000 for the week ending August 16. That’s an increase of 11,000 over last month and 6,000 above the Dow Jones consensus estimate of 225,000.
An adhesive and coatings maker rallied more than 5% on better-than-expected earnings and revenue, highlighting that not all sectors are struggling amid economic uncertainties.
On the international front, the U.S. and European Union released further information on last month’s trade announcement framework. This announcement underscores the importance they place on strengthening U.S. trade relations. The deal obligates the U.S. to apply no more than Most-Favored-Nation (MFN) duties on several hundred EU goods. Along with this, it caps various Section 232 tariffs at a wider 15% rate. These are undoubtedly some of the worst tariffs, considering they cover critical sectors like lumber, semiconductors, and pharmaceuticals.
Coty’s top line growth painting an opaque picture for investors to see the balance of opportunity versus risk. The company’s new CEO made it clear that they need to innovate their product portfolio. This strategy is intended to bring consumers coming back during the second half of the fiscal year.
“To be honest, I think she needs to resign quickly.” – Bill Pulte