Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Coty Inc (NYSE:COTY) were looking dazzling today, climbing as much as 13%, and finishing up 7% after reporting second-quarter earnings.

So what: The beauty-products maker matched earnings estimates with a profit of $0.28 a share, while revenues fell 4.1%, to $1.32 billion, but still topped expectations of $1.3 billion. Given the heavy promotional environment in retail, analysts had expected a relatively weak holiday performance. Investors seemed to be jazzed by the board's decision to authorize a $200 million share buyback program, which is about 3.5% of shares outstanding.  

Now what: While the share repurchases seem like good news for investors, it doesn't seem like enough to warrant such a spike in the stock. CEO Michele Scannavini even called the quarter "challenging," noting softness in the U.S market due to the difficult retail environment. Still, emerging market sales grew 6% in the quarter, showing that not all segments of the business suffered; but management said it expected the general softness to continue for the remainder of the fiscal year. Shares likely jumped simply because investors were expecting even worse. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.