Coty Inc. Reports $1.28 Billion Revenue with Increased Losses and Asset Impairment Charges

Coty Inc. reported a net revenue of $1,281.6 million for the three months ended March 31, 2026, a slight decrease of 1% from $1,299.1 million in the same period last year. For the nine months ended March 31, 2026, revenues also fell by 2% to $4,537.4 million compared to $4,640.5 million in the prior year. The decline in revenue was attributed to an 8% decrease in unit volume, particularly in body care and color cosmetics, although this was partially offset by a 6% positive impact from foreign currency exchange rates. The company's gross profit for the quarter was $791.9 million, down from $832.4 million a year earlier, reflecting increased costs of sales which rose to $489.7 million from $466.7 million.

Coty's financial performance was significantly impacted by asset impairment charges totaling $362.8 million in the latest quarter, compared to $212.8 million in the same quarter last year. This included a $237.1 million impairment related to goodwill in the Consumer Beauty segment, which has been under pressure due to declining sales in mass fragrance and color cosmetics. The company also reported an operating loss of $372.0 million for the quarter, worsening from a loss of $280.4 million in the prior year. The loss before income taxes was $458.9 million, with a net loss attributable to Coty Inc. of $408.1 million, slightly higher than the $405.7 million loss reported in the same quarter last year.

Strategically, Coty has undergone significant changes, including the appointment of Markus Strobel as Executive Chairman and Interim CEO in January 2026. The company is focusing on a comprehensive review of its operations to enhance performance and competitive positioning. Additionally, Coty completed the sale of its remaining 25.8% equity interest in Wella for $750 million in December 2025, which has allowed the company to reduce its debt significantly. The proceeds from this sale were used to redeem portions of its outstanding Euro Senior Secured Notes.

Operationally, Coty has seen a decline in its customer base, particularly in the U.S. market, where color cosmetics and mass fragrance sales have struggled. The company is actively working to improve its market share and sales performance through targeted initiatives and product innovations. As of March 31, 2026, Coty had a total employee headcount of approximately 8,000, reflecting ongoing efforts to streamline operations and reduce costs. The company anticipates that its reported net revenue for the fourth quarter of fiscal 2026 will decline by a mid-single-digit percentage compared to the prior year, with continued pressure on gross margins due to lower sales and increased costs.

Looking ahead, Coty is focused on deleveraging its balance sheet and optimizing its capital structure. The company expects to continue facing challenges from global economic conditions, including inflation and geopolitical tensions, which may impact consumer spending and demand for its products. Coty is committed to implementing cost reduction measures and enhancing its operational efficiency to navigate these challenges and improve its financial performance in the coming quarters.