Key Takeaways
- Coty’s Q1 fiscal 2026 net revenue reached $1.58 billion, a 6% decline year-on-year.
- Prestige revenue accounted for 68% of sales, down 4%, while Consumer Beauty fell 9%.
- The company anticipates a return to sales and profit growth in the second half of FY26.
Financial Overview
Coty has reported a first-quarter net revenue of $1.58 billion for fiscal 2026, representing a 6% decrease on a reported basis and an 8% decline on a like-for-like basis, aligning with market expectations. Despite these challenges, the company indicated that second-quarter sales are performing toward the upper end of projections and reaffirmed its outlook for a rebound in sales and profit growth later in the fiscal year.
The breakdown of sales reveals that prestige revenue, which constitutes 68% of total sales, saw a 4% drop. Meanwhile, the Consumer Beauty segment experienced a larger decline of 9%. The company reported an adjusted operating income of $240.5 million and an adjusted EBITDA of $296.1 million, reflecting an 18.8% margin. Notably, the prestige fragrance sector performed steadily, with products like BOSS Bottled Beyond marking significant male market launches and the ultra-premium fragrance line showing double-digit growth.
In terms of strategic actions, Coty is integrating its Prestige Beauty and Mass Fragrance divisions and is actively reviewing its mass color cosmetics and Brazilian market operations. E-commerce has emerged as a vital sales channel, contributing approximately 20% to total sales, with notable growth seen across platforms like Amazon.
Coty’s first-quarter performance signals stabilization amid necessary industry adjustments and inventory management. By leveraging its strengths in the global fragrance market, the company aims to mitigate the impacts felt in the Consumer Beauty sector. The ongoing strategic restructuring and the introduction of new brands are pivotal in the company’s strategy to foster growth and return to profitability in the latter half of fiscal 2026.
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