The Tamesis
Coty’s transformation began under executive chairman and interim CEO Markus Strobel, who succeeded Sue Nabi in December. The company said net income fell 3% to $1.68 billion in the second quarter of fiscal 2026, which ended Dec. 31, 2025.
“In my first month on the job, and after visiting our largest markets and key locations, it has become clear to me that Coty has many best-in-class assets and competitive advantages: compelling brands, best-in-class fragrance innovation capabilities, a vertically integrated business model and a creative, entrepreneurial organization,” Strobel told investors on Thursday. “At the same time, our financial results over the past year and a half have been disappointing, and our current stock price reflects that reality. Both things are true: Coty has great assets and capabilities, but we are not where we should be yet.”
Adjusted EBITDA fell 15% year-on-year, and gross profit margin dropped from 64.5% to 63.8%. Americas sales fell 3% year over year to $624.5 million, while Coty’s EMEA sales fell 4% and Asia Pacific sales fell 2%.
During the quarter, Burberry and Kylie Cosmetics led the high-end cosmetics category with mid-single-digit percentage growth, while skin care brands Lancaster and Philosophy posted double-digit percentage growth. However, Coty’s reputation segment has declined 4% over the past six months.
Coty is determined to turn things around with its plans for the future. Fragrance is a focus: Strobel said the company plans to continue its success with Boss’ Bottled Beyond fragrance, launching in fall 2025, while Kylie Cosmetics’ recent launch of Cosmic Kylie Jenner Intense has far exceeded expectations.
Other plans within the portfolio include a new Calvin Klein fragrance launching in the coming weeks, the relaunch of Marc Jacobs Beauty makeup later this year, and a Swarovski fragrance planned for 2027.
In the consumer beauty category, the company is investing in Rimmel and CoverGirl, while Adidas Fragrance continues to expand globally. During an earnings call, Coty confirmed it had terminated its license with Orveda, the vegan skin care brand founded by Nabi. Coty said the rest of the year will focus on scale, reach and profitability.
