THE WHAT? Coty reported third-quarter fiscal 2026 results with profitability ahead of expectations despite declining sales and ongoing geopolitical disruption.
THE DETAILS The beauty group posted net revenues of US$1.28 billion for the quarter, down 1% reported and 7% like-for-like, with an estimated 1.4% impact from Middle East disruption. Prestige, which accounts for 65% of sales, was flat on a reported basis but declined 5% LFL, while Consumer Beauty fell 4% reported and 10% LFL.
Reported operating loss widened to US$372 million due to a US$362.8 million impairment charge linked to the Consumer Beauty division. However, adjusted operating income reached US$72.4 million, outperforming expectations.
Year-to-date, Coty improved operating cash flow to US$422 million and free cash flow to US$276 million, supported by disciplined cost management. The company is also progressing with its “Coty.Curated” strategy, focusing on fewer product launches, AI-driven efficiencies, simplified operations, and increased investment in consumer engagement.
THE WHY? Sales were impacted by geopolitical disruption and softer demand, prompting Coty to tighten cost controls and implement a more focused strategy to improve performance.
Source: businesswire
