Coty, which owns brands including Marc Jacobs, Burberry, and Gucci, has published lower annual results for its fiscal year ending June 30, 2025. After a year described as transitional, the company is banking on a return to growth in the second half of fiscal 2026.
Coty’s net sales totaled $5.89 billion for fiscal 2025, down 4% on a reported basis and 2% on a comparable basis. This decline partly reflects inventory adjustments at certain distributors and continued weakness in the North American market.
While business is slowing, profitability is holding up : gross margin reached 64.8% on a reported basis, up 40 basis points, and 64.9% on an adjusted basis, 50 points higher than last year. Adjusted EBITDA rose slightly to $1.08 billion, representing 18.4% of revenue, compared with 17.8% a year earlier.
However, reported net income plunged into the red at -$381.1 million, representing a negative margin of 6.5%. This poor performance is due to exceptional expenses.
Highly contrasting regional performances
The results reveal significant disparities between geographical areas. In the Americas, Coty recorded sales of $2.37 billion, representing 40% of total revenue. The region saw an 8% decline in reported figures and a 3% decline on a comparable basis (excluding the impact of hyperinflation in Argentina). The prestige segment, in particular, suffered from sluggish demand in the United States, confirming the continuing caution of American consumers.
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Read also > Coty continues to lose ground in the third quarter of 2024-25
Featured photo : © Coty
