Sales Dip 1% for Coty in Q3 2026

Net revenue for Coty decreased 1% in Q3 2026 for the three months ended March 31, 2026 to $1.28 billion from the prior-year quarter.

On a like-for-like (LFL) basis, net revenue declined 7%, which included an estimated 1.4% headwind from the conflict in the Middle East.

Prestige net revenue of $830.9 million, representing 65% of the company’s total sales, was flat on a reported basis and declined 5% on a LFL basis. This included an estimated 2% headwind from the conflict in the Middle East.

Consumer Beauty net revenue of $450.7 million, representing 35% of the Company’s total sales, decreased 4% on a reported basis and 10% on a LFL basis, which included an estimated 1% headwind from the conflict in the Middle East.

For the nine months ended March 31, 2026, net revenue was $4.5 billion, a 2% decrease from the prior-year quarter. On a LFL basis, net revenue decreased 6%. Prestige net revenue of $3,034.0 million, representing 67% of the company’s total sales, decreased 1% on a reported basis and 5% on a LFL basis. Consumer Beauty net revenue of $1.5 billion, representing 33% of the company’s total sales, decreased 5% on a reported basis and 9% on a LFL basis.

CEO Markus Stroble said Q3 was an “important step” toward restoring consistent performance commensurate with Coty’s “outstanding assets and capabilities.”

“While the Q3 results were below our potential on an absolute basis, we were pleased to deliver profitability ahead of our guidance despite the disruption in our Middle East business late in the quarter,” he said. “This was a welcome first step, as we begin to gradually strengthen our operational control and execution.”

Coty Curated Strategy

Officials said the company is methodically implementing the Coty Curated strategic framework, announced last quarter, centered on sharper priorities, more focused investments, improved execution and increased support behind its core businesses.

Strobel said the company is embedding this framework into its FY27 action plans for both divisions. This includes significantly reducing the number of smaller launches, lowering marketing asset production costs in part through broad-based AI deployment for its owned brands, while increasing consumer engagement spending, and working to simplify its operational model. The goal is to grow its sell out and market share over time.

“I remain confident in Coty’s position as a leading fragrance player, underpinned by our multiple iconic brands, and targeted presence in other beauty categories, including cosmetics, skin care and body care,” said Strobel. “We believe stronger, more focused execution across our portfolio will enable us to deliver consistent, profitable growth, advance our deleveraging agenda, and further strengthen our balance sheet. While this will take time, I strongly believe that with sustained focus and discipline, Coty is well positioned to realize its full potential.”

Noteworthy Developments

Coty’s Prestige strategy continues to be anchored by key brands such as Burberry, Hugo Boss, Calvin Klein, Marc Jacobs, Chloé and Kylie Cosmetics. FY26 major launches continue to perform well fiscal year-to-date, including Boss Bottled Beyond and Cosmic by Kylie Jenner Intense, officials said.

Coty said it continues to see encouraging signs in Consumer Beauty, with both CoverGirl and Sally Hansen narrowing the gap to the category on a retail sales basis, while outperforming the category on a unit basis.

Outlook

Coty expects fourth quarter FY26 LFL revenue to decline by a mid‑single‑digit percentage, reflecting a moderate sequential improvement from third quarter sales trends.