The American beauty group continued to decline in the first quarter of its fiscal year, which ended in late September. But as it considers selling some of its cosmetics brands to refocus on fragrances, it expects a return to growth in the second half of the year.
After underperforming in its 2024/2025 fiscal year, Coty continued to decline in the first quarter of 2025/2026, which ended in late September. But as it has just announced a strategic review of its beauty business, it also sees light at the end of the tunnel and expects a return to growth in the second half of fiscal year 2025-2026.
The net sales of the American cosmetics group thus fell by 6% on a reported basis (-8% on a comparable basis) to $1.58 billion during the first three months of the current fiscal year.
Coty also posted adjusted earnings per share of just 12 cents in the first quarter, compared with an average of 15 cents expected by analysts, according to data compiled by LSEG. The reduction in orders from retailers amid persistent macroeconomic and tariff uncertainties explains the underperformance.
Prestige division down less than Consumer Beauty
However, net sales in its Prestige division (consisting mainly of premium fragrances), the largest with 68% of the group’s total sales, fell slightly less (-6% on a comparable basis to $1.07 billion) than those of the Consumer Beauty division (which includes makeup, cosmetics, and fragrance brands such as Adidas, Covergirl, Max Factor, Rimmel, and Sally Hansen), which fell 11% to $507.7 million.
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Read also > Coty to refocus on fragrances
Featured photo: © Gucci
