Coty Inc.’s transition year is underway.
The beauty company’s net revenue fell 1 percent to $1.55 billion for the first quarter of fiscal-year 2027, ended Sept. 30. Within that, prestige net revenue fell 1 percent to $1.05 billion, while consumer beauty net revenue decreased 2 percent to $496.8 million.
Adjusted net income was $146.1 million, up from $106 million in the prior year.
“Our first-quarter results were ahead of expectations on sales, adjusted EBITDA, and EPS, alongside a significant improvement in free cash flow, supported by the focus of Coty.Curated,” said Markus Strobel, executive chairman and interim chief executive officer. “Our like-for-like sales decline narrowed to 2 percent, broadly in line with the fourth quarter and a clear improvement from the declines of 6 percent and 4 percent in the first and second halves of fiscal 2026, reflecting improvements in key markets like the U.S., Asia-Pacific and Latin America. While our progress in the first quarter is encouraging, we have more work to do to translate green shoots into a broad-based recovery.”
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Coty previously announced it is carrying out a strategic review of its consumer business.
“We remain committed to completing the strategic review by the end of calendar 2026,” said Strobel. “Alongside it, we are designing the organization and cost structure to improve execution and prioritize reinvestment behind our brands. We will continue to build on our strengths: a portfolio of leading brands, strong category positions, and a differentiated end-to-end global platform. As we’ve previously shared, FY27 will be a transition year. We expect the recovery to be uneven, and implementation will take time.”
On Tuesday, WHP Global and G-III Apparel Group, the new owners of Marc Jacobs, inked a long-term beauty license extension with Coty Inc., running 40 years.
“Since our partnership began in 2003, Coty has built multiple iconic fragrances, with Marc Jacobs fragrances now ranking among the top 10 to 15 prestige female fragrances across the U.S., U.K., Canada and Australia,” said Strobel. “The recent launch of Marc Jacobs Beauty makeup is also off to a strong start across these markets. The multi-decade agreement provides Coty with a strong platform to build on that momentum while enhancing the long-term visibility of Coty’s prestige portfolio. This extension is also a powerful testament to Coty’s position as a partner of choice for the world’s leading luxury fashion and lifestyle brands.”
