US beauty giant Coty reported a net profit of $106 million in the first quarter of its 2026–2027 financial year, up 64 per cent, despite sales continuing to fall slightly. As the holder of beauty licences for Burberry, Hugo Boss, Calvin Klein and Marc Jacobs, the group is demonstrating its ability to accelerate its transformation in a luxury fragrance market that remains buoyant.
- Coty has extended its beauty licence with Marc Jacobs for 40 years, whilst the group is continuing to divest its stake in Gucci Beauty, a move which is helping to reduce its debt (Shutterstock)
For the period from July to September 2026, turnover stood at $1.55 billion, down 1 per cent, and 2 per cent on a like-for-like basis.
These figures follow a particularly challenging 2025–2026 financial year, marked by a net loss of $618 million, mainly due to impairments of the group’s assets and financial expenses, as well as a 2 per cent decline in revenue to $5.8 billion.
These latest results, however, show initial signs of stabilisation in several regions: in the United States, in the Asia-Pacific region – which posted growth of 11 per cent – and in Latin America. The EMEA (Europe, Middle East and Africa) market, meanwhile, remains more fragile, with a decline of 6 per cent.
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The Prestige Division is Resisting Well, Whilst Consumer Beauty Remains Under Pressure
The Prestige division, which accounts for 68 per cent of the group’s sales, generated $1.06 billion over the quarter, down 1 per cent. The six flagship brands in the portfolio (Hugo Boss, Burberry, Calvin Klein, Marc Jacobs, Chloé and Kylie Cosmetics) nevertheless posted cumulative organic growth of 5 per cent.
The Consumer Beauty division, which includes CoverGirl, Rimmel and Sally Hansen, remains more vulnerable, with revenue of $496.8 million, down 3 per cent on a like-for-like basis. Under the leadership of Markus Strobel, Coty continues to roll out its ‘Coty.Curated’ strategy, which aims to focus investment on the most profitable brands whilst streamlining costs.
Coty Continues To Refocus Its Brand Portfolio
Strategically, the company has just extended its beauty licence with Marc Jacobs for a further 40 years, a partnership that began in 2003. This decision secures one of its most important franchises and strengthens Coty’s presence in the premium fragrance market.
Conversely, the group is gradually continuing its divestment from Gucci Beauty. The early return of the licence to Gucci’s parent group was announced last July and represents a transaction worth approximately $400 million. This transaction has notably helped to reduce Coty’s net financial debt by more than $300 million since June, bringing it down to $2.58 billion at the end of September.
Key Points:
- Coty has extended its beauty licence with Marc Jacobs for 40 years, whilst the group is continuing to divest its stake in Gucci Beauty, a move which is helping to reduce its debt.
- Coty posted a net profit of $106 million in the first quarter of its 2026–2027 financial year, up 64 per cent, despite a 1 per cent decline in turnover.
- The Prestige division accounts for 68 per cent of the group’s sales and posted revenue of $1.06 billion. The six flagship brands in the portfolio recorded cumulative organic growth of 5 per cent.
The Coty Group has just announced its results for the 4th quarter of 2026. The U.S.-based beauty group, which owns the Burberry, Hugo Boss, and Chloé licenses, among others, reported quarterly revenue of $1.27 billion, up 1.3% from the same period in 2025. The performance significantly exceeded Wall Street expectations, which had forecast a 4.6% decline.
On Thursday, April 24, Coty announced the elimination of nearly 700 jobs as part of its “All-in to Win” transformation plan. The decision aims to simplify the company’s organization, reduce fixed costs by $130 million per year, and refocus on its strategic brands. Other groups, also facing downward forecasts, are under pressure.
