On November 5, global fragrance giant Coty Inc. released its financial results for the first quarter of fiscal year 2026, ended September 30, 2025.
According to the report, Coty posted net revenue of $1.577 billion, down 6% year over year, while adjusted EBITDA came in at $296 million, an 18% decrease compared with the same period last year.
Coty operates through two main divisions: Prestige and Consumer Beauty. During the quarter, the Prestige division generated $1.07 billion in net revenue, accounting for 68% of total sales, a 4% year-on-year decline. The Consumer Beauty division reported $508 million in net revenue, a 9% decrease from the prior year.
Within the Prestige segment, the fragrance category delivered mid-single-digit growth, roughly in line with the previous quarter. In the U.S., Coty’s prestige fragrance sell-out performance closed the gap with the overall market — from being about five percentage points behind in Q4 FY2025 to being on par in Q1 FY2026. In China, prestige sell-out grew 15%, driven by strong performances in fragrances and skincare.
Focusing on the Consumer Beauty division, Coty initiated a strategic review of its color cosmetics business during the quarter, exploring options including partnerships, divestitures, or spin-offs. The company has assembled a dedicated leadership team to improve operational efficiency, focusing on innovation, brand equity enhancement, and consumer engagement.
Coty also stated in the report that it will continue to operate the Gucci Beauty business under the current agreement. “Our focus now is on optimizing the brand for the remainder of the license term,” the company said.
By channel, both Prestige and Consumer Beauty saw steady e-commerce sell-out growth, although sales were impacted by inventory reductions across channels. E-commerce accounted for around 20% of Coty’s total sales during the period.
Looking ahead to the full year, Coty said the Prestige division will continue to launch major new products and expand across the high-growth, high-margin fragrance mist category with multiple brands. Marc Jacobs Beauty is scheduled to launch in 2026, while Swarovski fragrances are planned for 2027. Meanwhile, the Consumer Beauty division will introduce new innovations for its mass fragrance portfolio, launch a new in-house-developed fragrance line, and continue advancing the strategic review of its color cosmetics business.
Coty reaffirmed its fiscal 2026 adjusted EBITDA target of $1 billion, adding that second-quarter sales are expected to decline within the favorable end of its prior guidance range (-3% to -5%), with sequential improvement across both divisions. The company expects year-over-year sales growth to resume in the second half of the fiscal year.
