Overview
- Fiscal first-quarter net sales fell 6% to $1.58 billion and adjusted EPS came in at $0.12 versus $0.15 expected, with retailers cutting orders amid macro and tariff uncertainty.
- For the second quarter, Coty projects like-for-like sales at the top of its prior range and guides adjusted EPS of $0.18–$0.21, pointing to steady demand for Calvin Klein and Hugo Boss fragrances.
- Management is refocusing on fragrances as a resilient growth engine across price tiers, emphasizing scent launches and category strength over weaker color cosmetics.
- Coty is conducting a Citi-led strategic review of its mass color cosmetics and Brazil operations, exploring partnerships, divestitures or spin-offs, while reiterating its prestige division is not for sale.
- Gucci beauty and fragrance rights are slated to move to L'Oréal when the license expires in 2028, and Coty says it will operate and optimize Gucci under the current agreement while preparing launches with Swarovski, Etro, Marni and a 2026 return of Marc Jacobs Beauty.