Coty reported net revenue of $1.55 billion for the first quarter of fiscal 2027, down 1% from a year earlier. The quarter ended September 30. Adjusted net income increased to $146.1 million, compared with $106 million in the prior-year period.
Prestige net revenue fell 1% to $1.05 billion, while consumer beauty revenue declined 2% to $496.8 million. Coty executive chairman and interim CEO Markus Strobel said results exceeded expectations for sales, adjusted EBITDA and earnings per share, and that free cash flow improved significantly.
Like-for-like sales declined 2%, which Strobel said reflected progress in markets including the U.S., Asia-Pacific and Latin America. He described the quarter’s progress as encouraging but said the company still had work to do to achieve a broad-based recovery.
Coty is conducting a strategic review of its consumer business and remains committed to completing it by the end of calendar 2026, Strobel said. The company is also working on its organizational and cost structure, with the aim of improving execution and prioritizing investment in its brands. Coty expects fiscal 2027 to be a transition year, with an uneven recovery and implementation taking time.
The results come as Coty extends its beauty license agreement with Marc Jacobs. WHP Global and G-III Apparel Group, the fashion brand’s new owners, agreed to a 40-year extension. Coty said the partnership began in 2003 and that Marc Jacobs fragrances rank among the top 10 to 15 prestige women’s fragrances in the U.S., U.K., Canada and Australia. The brand’s recently launched makeup line has also made a strong start in those markets, according to Strobel.
Sources: WWD.