Coty has announced a multi-pronged plan to boost operational efficiency and profitability after plunging into the red in the third fiscal quarter.

The company’s net loss for the quarter ended March 31 was $409 million, compared to net income of $500,000 in the year-ago period.

Net revenues fell 6 per cent to $1.299 trillion, with like-for-like sales down 3 per cent when excluding headwind from foreign exchange. The prestige segment recorded a 4 per cent drop in sales, while the consumer beauty segment saw a 9 per cent decline.

For the first nine months of FY25, net revenues fell 2 per cent to $4.6 trillion, with flat like-for-like sales. The company’s nine-month net loss of $309 million compares with a net income of $176.4 million last year.

CEO Sue Nabi said 2025 remains a transition year for Coty and that the company is navigating “complex dynamics” including tariffs and macroeconomic uncertainty.

Management has set out a multi-pronged plan to accelerate innovation, distribution, and efficiencies and improve business performance over the course of FY26.

As part of this scheme, the company is preparing “blockbuster launches” for its prestige segment, as well as the extension of one of its major brands into the US.

For consumer beauty, new innovations under key mass fragrance brands, new fragrance lines and new technologies under cosmetics brands are set to be introduced next year.

In addition, the next phase Coty’s ‘All in To Win’ program will unlock an incremental $370M in fixed cost and productivity savings throughout FY26 and FY27. The company hopes these savings coupled with its pricing power will offset the impact from the announced tariffs. 

For this fiscal year, Coty expects a 2 per cent decline in like-for-like sales and flat earnings before interest, taxes, depreciation, and amortization.