Coty posted weak results for the first quarter ended on 30 September 2026, with net revenue decreasing by 1 per cent to $1.6bn, on a reported basis.
Additionally, the beauty retailer’s reported operating income reduced to $170.4m from $185 in the year prior.
Coty’s net income improved to $64.6m in the first quarter of 2025 to $106.2 in the first quarter of 2026.
The beauty brand’s adjusted EBITDA declined by 7 per cent to $274.2m compared to $296.1m compared to the same time last year.
Coty’s consumer net revenue also declined by 2 per cent to around $496.8m on a like-for-like basis.
The business pushed toward growth across its major brands, including Burberry, Hugo Boss, Calvin Klein, Marc Jacobs, Chloé, and Kylie Cosmetics.
Markus Strobel, executive chairman and interim CEO of Coty said: “The prestige and mass beauty markets continue to grow despite macroeconomic uncertainty, while our overall sell-out still trails the market in both divisions.
“Our priority is to translate investment into stronger sell-out and market share gains, with market share embedded in how we reward performance across the organization.
“Our objective is to create value over time through a virtuous cycle: focused investment drives quality growth, while better gross margins and a more efficient cost base strengthen earnings. Converting those earnings into cash supports deleveraging and reinvestment in the next phase of sustainable growth.”
The business expects like-for-like revenue to decrease by a low-single-digit percentage, which reflects the last two quarters.
Additionally, the company expects adjusted EBITDA to decline by a high-single-digit percentage, which reflects the trends in the first quarter.
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