Coty Revenues Fall 7% in Q3
Sales in the company’s prestige category decreased 5% in the third quarter of 2026.
Reported by Vogue.
The beauty industry's numbers don't lie, and right now, Coty's are telling a rough story. The fragrance and cosmetics conglomerate reported a 7% revenue drop in Q3 of fiscal 2026, bringing in $1.28 billion for the quarter ended March 31 — a steeper slide than the 3% decline it posted in Q2, according to Vogue. Adjusted EBITDA fell 38% year-on-year, with gross margin contracting to 61.8%. Every region took a hit: the Americas down 6%, Asia-Pacific down 5%, and EMEA — already navigating Middle East disruption — off by 11%.
On paper, the portfolio reads like a beauty hall fantasy. Coty's prestige division, home to Burberry, Calvin Klein, Marc Jacobs, Chloé, Hugo Boss, and Kylie Cosmetics, was supposed to be the growth engine. Instead, it pulled in $830.9 million — a 5% like-for-like decline. The consumer beauty arm, anchoring drugstore staples CoverGirl and Sally Hansen, fared worse, with sales falling 10% to $450.7 million. Having the right names isn't enough when execution isn't landing.
The Bet on What's Next
Still, the company isn't retreating — it's recalibrating. The Calvin Klein Euphoria Elixirs relaunch drew strong responses in Europe and travel retail across the Americas, and Coty is pushing momentum behind the Boss Bottled franchise. June will bring Marc Jacobs Beauty's entry into makeup, a category expansion that could reshape how the brand sits in the market. Additional major launches are slated for 2027, though details remain tightly guarded.
Executive chair and interim CEO Markus Strobel struck a carefully measured tone with investors, framing Q3 as "an important step toward restoring consistent performance" and flagging that profitability came in ahead of guidance despite the geopolitical headwinds. He acknowledged the Middle East conflict will drag Q4 results by an estimated 2–3%, while insisting that sharper portfolio focus will eventually deliver "consistent, profitable growth" and strengthen the balance sheet. It reads like a turnaround speech — which, to be fair, is exactly what this moment requires.
Coty's challenge isn't brand equity — it has plenty — it's the gap between a prestige-heavy ambition and the operational discipline needed to close it.
Read the original at Vogue.
