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Coty Reports 1% Sales Decline as Prestige Brands Recover

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Coty Reports 1% Sales Decline as Prestige Brands Recover

THE WHAT? Coty reported a 1 percent decline in first-quarter fiscal 2027 revenue to US$1.56 billion, although improved performance across its core prestige brands and stronger cash generation indicated early progress under its Coty.Curated restructuring strategy.

THE DETAILS Like-for-like sales declined 2 percent, with Prestige revenue falling 1 percent to US$1.06 billion and Consumer Beauty sales decreasing 2 percent to US$496.8 million. However, Coty’s six core prestige brands, including Burberry, Hugo Boss, Calvin Klein, Marc Jacobs, Chloé and Kylie Cosmetics, recorded combined like-for-like growth of 5 percent. Net income increased to US$106.2 million from US$64.6 million, while free cash flow rose to US$84.6 million. Coty forecasts a further low-single-digit decline in like-for-like sales during the second quarter.

THE WHY? The results highlight the challenges facing Coty as it restructures its cosmetics and fragrance portfolio to restore sustainable growth and profitability. Improving performance among its core prestige brands suggests that more concentrated investment is beginning to deliver results, although continued weakness in mass-market cosmetics and pressure on margins underline the importance of portfolio simplification, cost control and stronger retail execution.



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