Coty reports USD 1.6M net revenue in Q1 FY26
This performance represents a 6% decline on a reported basis.
USA – Coty has reported first-quarter fiscal 2026 net revenue of USD 1.577 billion, representing a 6% decline on a reported basis and an 8% decline on a like-for-like basis compared to the prior year.
The company’s Prestige segment, accounting for 68% of sales, saw a 4% reported decline and a 6% like-for-like decrease, while the Consumer Beauty segment fell 9% reported and 11% like-for-like.
Despite these declines, Coty’s U.S. Prestige fragrance sales grew by a mid-to-high single-digit percentage, aligning with overall market growth, reflecting positive momentum in this key category.
The company’s adjusted operating income was USD 240.5 million, down 21% year-over-year, with adjusted EBITDA of USD 296.1 million and an 18.8% margin, both impacted by lower sales but partially offset by fixed-cost savings.
Reported gross margin stood at 64.5%, down 100 basis points mainly due to tariff-related costs, and reported operating income was USD 185 million, decreasing from USD 237.8 million last year.
Net income was USD 64.6 million with a margin of 4.1%, and reported EPS was $0.07, including a USD 0.03 negative impact from equity swap mark-to-market adjustments. Adjusted EPS was USD 0.12.
Cash flow from operations totalled USD 65.2 million, with free cash flow improving to $11.2 million.
Total debt at quarter-end was USD 4.069 billion, and net financial debt was USD 3.805 billion, resulting in a leverage ratio of 3.7x adjusted EBITDA.
Coty’s 25.8% stake in Wella was valued at USD 1.003 billion.
Strategically, Coty announced the integration of its Prestige Beauty and Mass Fragrance businesses to leverage its fragrance strength, while conducting a comprehensive review of its mass colour cosmetics business and Brazilian operations to unlock value.
The company continues to expand its fragrance portfolio with launches like BOSS Bottled Beyond, noted as a leading male fragrance in Europe and Australia, and growing ultra-premium fragrances by 17%.
New product innovations, including fragrance mists from Calvin Klein, Kylie Cosmetics, and philosophy, along with plans for new product launches under brands like Marc Jacobs Beauty and Swarovski, support Coty’s growth outlook.
Coty reaffirmed its Q2 guidance, anticipating sales at the higher end of prior estimates, and expects a return to sales and profit growth in the second half of fiscal 2026.
E-commerce sales account for approximately 20% of total sales and are growing, particularly through partnerships with Amazon.
The company also strengthened its sustainability efforts, publishing its first CSRD-compliant sustainability report and achieving key milestones, including a 16% reduction in water use and 100% RSPO-certified palm oil sourcing.
Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE.
