THE FACT THAT? Coty reported first-quarter fiscal 2026 net revenue of $1.58 billion, down 6% on a reported basis and down 8% comparable, in line with expectations. The company said second-quarter sales are approaching the high end of guidance and reaffirmed expectations for a return to sales and profit growth in the second half of FY26.
THE DETAILS Prestige revenue, which accounted for 68% of total sales, declined 4%, while Consumer Beauty fell 9%. Adjusted operating income was US$240.5 million, with adjusted EBITDA of US$296.1 million and a margin of 18.8%. Coty cited steady performance in prestige fragrances, with BOSS Bottled Beyond emerging as one of the season’s top men’s launches, and double-digit growth in ultra-premium fragrances.
The company is integrating its Prestige Beauty and Mass Fragrance divisions, while conducting a strategic review of its Brazil and mass color cosmetics businesses. E-commerce accounted for about 20% of total sales, with continued gains on Amazon and other platforms.
THE WHY? Coty’s first-quarter performance reflects a stabilization following category resets and inventory adjustments, and the company leveraged its strength in global fragrances to offset weakness in Consumer Beauty. Strategic restructuring and new brand launches are expected to support a return to growth and profitability in the second half of FY26.
Fountain: business cable
