The Tamesis
Coty announced on Tuesday that revenue for the third quarter of fiscal 2026, which ended March 31, 2026, fell 7% to $1.28 billion. This was a further decline from a 3% revenue decline in the second quarter.
Despite the poor results, executives remain optimistic about the French company’s turnaround. “The third quarter marked an important step toward a return to consistent performance commensurate with Coty’s outstanding assets and capabilities,” executive chairman and interim CEO Markus Strobel told investors. “While third-quarter results were definitely below our potential, we are pleased to be profitable ahead of our guidance despite disruptions to our Middle East operations later in the quarter. This is a welcome first step as we begin to gradually strengthen our operational controls and execution.” (Coty expects the conflict in the Middle East to have an estimated -2% to -3% impact on fourth-quarter results.)
Adjusted EBITDA fell 38% year-on-year in the third quarter, and gross profit margin fell 61.8%. Sales in the Americas fell 6% year-on-year, Coty’s EMEA (Europe, Middle East and Africa) sales fell 11%, and sales in the Asia-Pacific region fell 5%.
Coty said its prestige-focused strategy continues to be anchored by key brands such as Burberry, Hugo Boss, Calvin Klein, Marc Jacobs, Chloé and Kylie Cosmetics, through which it hopes to drive sales. However, the industry’s revenue fell 5% year over year to $830.9 million.
Coty’s consumer beauty division, which includes CoverGirl and Sally Hansen, also posted losses, with third-quarter sales falling 10% to $450.7 million.
The company noted that it relaunched Calvin Klein Euphoria Elixirs earlier this year, which received positive feedback in travel retail across Europe and the Americas. Looking to the future, Coty hopes to continue the success of its Boss Bottled franchise business. In June, Marc Jacobs Beauty will debut in the makeup category, while other major product launches planned for 2027 remain under wraps.
Coty believes its discipline and continued focus on revitalizing all categories and brands will ultimately get the business back on track. “We believe stronger, more focused execution across our portfolio will enable us to deliver continued profitable growth, advance our deleveraging agenda and further strengthen our balance sheet,” Strobel said.
