For the three months ended September 30, 2025 in 1Q26, Coty's net revenue totaled $1,577.2 million, representing a decrease of 6% on a reported basis and included a 2% benefit from FX. On a LFL basis, net revenue declined 8%.
Coty saw solid e-commerce sell-out growth in both prestige and consumer beauty in Q126. Prestige net revenue totaled $1,069.5 million, representing 68% of the company's total sales and a decrease of 4%. On a LFL basis, net revenue declined 6% in the quarter. Consumer beauty net revenue totaled $507.7 million, representing 32% of the company's total sales and a decrease of 9%. On a LFL basis, net revenue declined by 11%.
- Reported net income of $64.6 million decreased from net income of $79.6 million in the prior year.
- Reported EPS of $0.07 decreased from $0.09 in the prior year and included a negative impact from the equity swap mark-to-market of $0.03.
- Adjusted EPS of $0.12 declined from adjusted EPS of $0.15 in the prior year and included a negative impact from the equity swap mark-to-market of $0.03.
- Adjusted EBITDA of $296.1 million decreased 18% year-over-year. The adjusted EBITDA margin of 18.8% reflected a 270 basis point decline.
Coty's Push into Prestige and Mass Ultra-Premium Fragrances and Mists
Consumer demand for beauty continues to be solid, particularly for fragrances across price points and formats. The prestige fragrance category grew at a mid-single-digit percentage in Q1.
Coty has announced plans to more closely integrate its prestige beauty and mass fragrance businesses, reaffirming its commitment to its heritage and core strengths as a fragrance powerhouse. In the United States, Coty made positive progress to close the gap between its U.S. prestige fragrance sell-out and the overall U.S. prestige fragrance market. To capture new growth opportunities, Coty plans to push into ultra-premium fragrances and fragrance mists and expand distribution across fragrances.
Prestige and Consumer Beauty Plan Highlights
- Multi-brand push into the rapidly growing and high-margin fragrance mist category, including recent launches of hair and body mists under Calvin Klein, philosophy and Kylie Cosmetics
- Makeup under Marc Jacobs Beauty expected to debut in CY26
- Swarovski fragrance targeted to launch in CY27
- Projected launch of new innovations under key mass fragrance brands, including Adidas, Nautica, Vera Wang and Bruno Banani
- Expanded into scenting adjacencies, including recent launches of hair and body mists under Adidas Vibes, Nautica and Jawhara
- Campaign to increase demand through high-performing channels like Amazon and TikTok Shop
