Coty Delivers In-Line Q1 FY26 Results, Expects Return to Growth in Second Half

THE WHAT? Coty reported first-quarter fiscal 2026 net revenue of US$1.58 billion, down 6% on a reported basis and 8% like-for-like, in line with expectations. The company said Q2 sales are tracking toward the upper 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 represented 68% of total sales, declined 4%, while Consumer Beauty fell 9%. Adjusted operating income was US$240.5 million, with an adjusted EBITDA of US$296.1 million and an 18.8% margin. Coty cited steady performance in prestige fragrances, with BOSS Bottled Beyond emerging as one of the top male launches of the season 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 mass color cosmetics and Brazil businesses. E-commerce accounted for roughly 20% of total sales, with ongoing gains across Amazon and other platforms.

THE WHY? Coty’s Q1 performance reflects stabilization following category resets and inventory adjustments, with the company leveraging its strength in global fragrances to offset softness in Consumer Beauty. Strategic restructuring and new brand launches are expected to support the return to growth and profitability in the second half of FY26.

Source: businesswire