Coty announced its results for the third quarter of fiscal year 2026, ended March 31, 2026. Despite Middle East-related disruptions, Coty delivered Q3 profit ahead of expectations, supported by cost control and the reallocation of investment toward Q4 activations.

Markus Strobel, Executive Chairman and Interim Chief Executive Officer, commented,

“Q3 marked an important step toward restoring consistent performance commensurate with Coty’s outstanding assets and capabilities. While the Q3 results were below our potential on an absolute basis, we were pleased to deliver profitability ahead of our guidance despite the disruption in our Middle East business late in the quarter. This was a welcome first step, as we begin to gradually strengthen our operational control and execution.”

Three Months Summary

Net revenue in Q3 was $1,281.6 million, a decrease of 1% on a reported basis and included a 6% benefit from foreign exchange (FX). On a like-for-like (LFL) basis, net revenue declined 7%, which included an estimated 1.4% headwind from the conflict in the Middle East.

Prestige net revenue was $830.9 million in Q3, representing 65% of Coty’s total sales. This was flat on a reported basis and declined 5% on an LFL basis. This included an estimated 2% headwind from the conflict in the Middle East.

Consumer Beauty net revenue reached $450.7 million, representing 35% of Coty’s total sales. This was a decrease of 4% on a reported basis and 10% on an LFL basis, which included an estimated 1% headwind from the conflict in the Middle East.

Strobel added,

“We are methodically implementing the Coty.Curated strategic framework announced last quarter, centered on sharper priorities, more focused investments, improved execution, and increased support behind our core businesses. We are embedding this framework into our FY27 action plans for both divisions, including significantly reducing the number of smaller launches, lowering marketing asset production costs in part through broad-based AI deployment for our owned brands, while increasing consumer engagement spending, and working to simplify our operational model, all with the ultimate objective to grow our sell out and market share over time.”

Nine Months Summary 

Net revenue was $4,537.4 million, decreased 2%, and included a 4% benefit from FX. On an LFL basis, net revenue decreased 6%.

Prestige net revenue reached $3,034.0 million, representing 67% of Coty’s total sales. This was a decrease of 1% on a reported basis and 5% on an LFL basis.

Consumer Beauty net revenue was $1,503.4 million, representing 33% of Coty’s total sales. It was a decrease of 5% on a reported basis and 9% on an LFL basis.

Strobel concluded,

“As we near the conclusion of our strategic planning and portfolio assessment, to be validated with our Board including our new independent directors, we expect to share more details in the coming quarters. At the same time, I remain confident in Coty’s position as a leading fragrance player, underpinned by our multiple iconic brands, and targeted presence in other beauty categories, including cosmetics, skin care, and body care. We believe stronger, more focused execution across our portfolio will enable us to deliver consistent, profitable growth, advance our deleveraging agenda, and further strengthen our balance sheet.”