Coty looks to revive demand after sales slip

Coty results — For the year ended June 30, the beauty giant’s net revenue fell 2 per cent to $5.81 billion. (Source: Coty)

By Kaycee Enerva August 21, 2026

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Coty is turning its attention to improving consumer demand for its brands after its interim CEO, Markus Strobel, acknowledged that sales to shoppers remain below market levels.

“We are not content with our sell-out performance, which remains below market levels in both divisions, and steadily closing that gap remains a clear priority across the organization,” he explained.

For the year ended June 30, the beauty giant’s net revenue fell 2 per cent to $5.81 billion, while adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) fell 22 per cent to $846.9 million, mainly due to lower sales and gross profit.

Segment-wise, prestige’s revenue fell 4 per cent on a like-for-like basis to $3.81 billion, while consumer beauty sales declined 7 per cent to $2 billion.

Coty’s fourth-quarter performance was stronger, with reported revenue rising 1 per cent to $1.27 billion. On a like-for-like basis, sales declined 1 per cent, including an estimated 1 per cent impact from the conflict in the Middle East. Adjusted EBITDA fell 26 per cent to $93.6 million.

Strobel said the company ended the year ahead of its sales and profit targets and grew free cash flow despite the business headwinds.

“We closed FY26 on a stronger note, delivering sales and profit ahead of our targets, growing free cash flow even in the face of business headwinds, all while establishing a clear strategic framework and taking decisive action,” he said.

For FY27, Coty plans to focus on fewer key growth initiatives, with increased consumer engagement and stronger visibility for its brands across AI platforms.

“In consumer beauty color cosmetics, we are simplifying the innovation calendar and SKU base, and shifting resources toward fewer, higher-impact launches and proven hero products,” Strobel said.

Coty expects first-half free cash flow to exceed $300 million, supported by seasonal trading and continued control of capital spending and working capital.

“We are confident that our focused framework will unlock Coty’s significant potential and steadily translate into shareholder value in the years ahead,” Strobel concluded.