Coty has reported a 7 percent decline in revenues to $1.28 billion for the third quarter of fiscal 2026, ended March 31, marking a steeper drop compared to the 3 percent decline recorded in Q2. Adjusted EBITDA fell 38 percent year on year, with gross margin decreasing 61.8 percent, as the company continues to navigate a challenging operating environment across key markets.
Regional performance was broadly weak. Americas sales declined 6 percent on a like-for-like basis, EMEA sales fell 11 percent, and Asia Pacific recorded a 5 percent drop. The company also flagged disruption in its Middle East business towards the end of the quarter, with the conflict expected to impact Q4 results by an estimated 2 to 3 percent.
Coty’s prestige division, anchored by brands including Burberry, Hugo Boss, Calvin Klein, Marc Jacobs, Chloé, and Kylie Cosmetics, saw revenues decline 5 percent like-for-like to $830.9 million. The consumer beauty division, which includes CoverGirl and Sally Hansen, recorded a steeper 10 percent fall to $450.7 million.
Despite the challenging results, executive chair and interim CEO Markus Strobel struck a cautiously optimistic tone, describing Q3 as an important step towards restoring consistent performance and noting that profitability came in ahead of guidance.
Looking ahead, Coty is placing significant bets on upcoming launches to drive momentum. The Calvin Klein Euphoria Elixirs relaunch has already received positive feedback in Europe and travel retail, while the highly anticipated Marc Jacobs Beauty makeup debut is scheduled for June 2026. The Boss Bottled franchise also remains a key focus for the prestige division.
Coty remains confident that disciplined execution across its portfolio will enable it to deliver consistent, profitable growth, advance its deleveraging agenda, and strengthen its balance sheet through 2027 and beyond.
