Coty is beginning its transformation under Markus Strobel, executive chairman and interim CEO, who took over the role from Sue Nabi in December. The company said net revenue declined 3% to $1.68 billion in the second quarter of fiscal 2026, ended December 31, 2025.
“In my first month in the role, having visited our largest markets and key sites, it’s very clear to me that Coty has many top-notch assets and competitive advantages: highly attractive brands, best-in-class fragrance innovation capabilities, a vertically integrated business model, and a creative, entrepreneurial organization,” Strobel told investors on Thursday. “At the same time, our financial performance over the past year and a half has been disappointing, and our current share price reflects that reality. Both things are true: Coty has outstanding assets and capabilities, yet we have not been delivering at the level we should.”
Adjusted EBITDA declined 15% year-on-year, with gross margin decreasing from 64.5% to 63.8%. Americas sales declined by 3% on a like-for-like basis to $624.5 million, while Coty’s EMEA sales declined by 4% and Asia-Pacific by 2%.
During the quarter, Burberry and Kylie Cosmetics led the prestige makeup category with mid-single-digit percentage growth, while skincare brands Lancaster and Philosophy posted double-digit percentage growth. However, Coty’s prestige sector decreased by 4% in the last six months.
Coty is determined to turn a corner with its future plans. Fragrance is a focus: Strobel said the company plans to continue its success with Boss’s Bottled Beyond fragrance, which launched in fall 2025, and that the recently launched Cosmic Kylie Jenner Intense from Kylie Cosmetics is performing well ahead of expectations.
Other plans in the portfolio include a new Calvin Klein fragrance in the coming weeks, a Marc Jacobs Beauty relaunch makeup later this year, and a Swarovski fragrance slated for launch in 2027.
In the consumer beauty category, the company is investing in Rimmel and CoverGirl, while Adidas fragrances continue to expand globally. During its earnings call, Coty confirmed it has terminated its license with Orveda, the vegan skincare brand founded by Nabi. Coty said it’s focusing on scale, reach, and profitability for the rest of the year.
