{"id":1220,"date":"2026-05-06T01:30:00","date_gmt":"2026-05-05T23:30:00","guid":{"rendered":"http:\/\/stocks-future.com\/?guid=32fc4c5d87156492c699fcddcf10c620"},"modified":"2026-05-06T01:30:00","modified_gmt":"2026-05-05T23:30:00","slug":"coty-announces-third-quarter-fiscal-year-2026-results","status":"publish","type":"post","link":"https:\/\/stocks-future.com\/?p=1220","title":{"rendered":"Coty Announces Third Quarter Fiscal Year 2026 Results"},"content":{"rendered":"

\nQ3 Results Inline to Ahead of Expectations<\/i><\/p>

\nGrowth in Fiscal Year to Date Operating Cash Flow to $422M and Free Cash Flow to $276M, Despite Lower Profit, Reflecting Disciplined Working Capital and Capital Expenditure<\/i><\/p>

\nInitial Implementation of Coty.Curated Strategic Framework to Support Healthier Business In FY27 & Beyond<\/i><\/p>

NEW YORK--(BUSINESS WIRE)--Regulatory News:<\/p><\/a><\/a>

\nCoty Inc. (NYSE: COTY) (Paris: COTY) (\u201cCoty\u201d or \u201cthe Company\u201d) today announced its results for the third quarter of fiscal year 2026, ended March 31, 2026. Despite Middle East-related disruptions, Coty delivered Q3 profit ahead of expectations, supported by cost control and the reallocation of investments behind activations in Q4.<\/p>

\n\u201cQ3 marked an important step toward restoring consistent performance commensurate with Coty's outstanding assets and capabilities,\u201d said Markus Strobel, Executive Chairman and Interim Chief Executive Officer.<\/p>

\n\u201cWhile the Q3 results were below our potential on an absolute basis, we were pleased to deliver profitability ahead of our guidance despite the disruption in our Middle East business late in the quarter. This was a welcome first step, as we begin to gradually strengthen our operational control and execution.<\/p>

\n\u201cWe are methodically implementing the Coty.Curated strategic framework announced last quarter, centered on sharper priorities, more focused investments, improved execution, and increased support behind our core businesses. We are embedding this framework into our FY27 action plans for both divisions, including significantly reducing the number of smaller launches, lowering marketing asset production costs in part through broad-based AI deployment for our owned brands, while increasing consumer engagement spending, and working to simplify our operational model, all with the ultimate objective to grow our sell out and market share over time.<\/p>

\n\u201cAs we near the conclusion of our strategic planning and portfolio assessment, to be validated with our Board including our new independent directors, we expect to share more details in the coming quarters. At the same time, I remain confident in Coty's position as a leading fragrance player, underpinned by our multiple iconic brands, and targeted presence in other beauty categories, including cosmetics, skin care, and body care. We believe stronger, more focused execution across our portfolio will enable us to deliver consistent, profitable growth, advance our deleveraging agenda, and further strengthen our balance sheet.<\/p>

\n\u201cWhile this will take time, I strongly believe that with sustained focus and discipline, Coty is well positioned to realize its full potential.\u201d<\/p>

\nRESULTS AT A GLANCE<\/b><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\nThree Months Ended March 31, 2026<\/b><\/p><\/td>

\nNine Months Ended March 31, 2026<\/b><\/p><\/td><\/tr>\n

\n(in millions, except per share data)<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\nChange YoY<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\nChange YoY<\/p><\/td><\/tr>\n

\nCOTY INC.<\/b><\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\nReported<\/p>

\nBasis<\/p><\/td>

\n\u00a0<\/p><\/td>

\n(LFL)(a)<\/sup><\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\nReported<\/p>

\nBasis<\/p><\/td>

\n\u00a0<\/p><\/td>

\n(LFL)(a)<\/sup><\/p><\/td><\/tr>\n

\nNet revenues<\/p><\/td>

\n\u00a0<\/p><\/td>

\n$<\/b><\/p><\/td>

\n1,281.6<\/b><\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n(1<\/p><\/td>

\n%)<\/p><\/td>

\n\u00a0<\/p><\/td>

\n(7<\/p><\/td>

\n%)<\/p><\/td>

\n$<\/b><\/p><\/td>

\n4,537.4<\/b><\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n(2<\/p><\/td>

\n%)<\/p><\/td>

\n\u00a0<\/p><\/td>

\n(6<\/p><\/td>

\n%)<\/p><\/td><\/tr>\n

\nGross Margin - reported<\/i><\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n61.8<\/i><\/p><\/td>

\n%<\/i><\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n63.5<\/i><\/p><\/td>

\n%<\/i><\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td><\/tr>\n

\nGross Margin - adjusted*<\/i><\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n61.8<\/i><\/p><\/td>

\n%<\/i><\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n63.6<\/i><\/p><\/td>

\n%<\/i><\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td><\/tr>\n

\nOperating income - reported<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n(372.0<\/b><\/p><\/td>

\n)<\/b><\/p><\/td>

\n\u00a0<\/p><\/td>

\n(33<\/p><\/td>

\n%)<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n(38.8<\/b><\/p><\/td>

\n)<\/b><\/p><\/td>

\n\u00a0<\/p><\/td>

\n<(100<\/p><\/td>

\n%)<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td><\/tr>\n

\nNet (loss) income attributable to common shareholders - reported **<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n(411.4<\/b><\/p><\/td>

\n)<\/b><\/p><\/td>

\n\u00a0<\/p><\/td>

\n(1<\/p><\/td>

\n%)<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n(473.7<\/b><\/p><\/td>

\n)<\/b><\/p><\/td>

\n\u00a0<\/p><\/td>

\n(53<\/p><\/td>

\n%)<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td><\/tr>\n

\nOperating income - adjusted*<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n72.4<\/b><\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n(51<\/p><\/td>

\n%)<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n587.2<\/b><\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n(25<\/p><\/td>

\n)%<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td><\/tr>\n

\nNet income attributable to common shareholders - adjusted* **<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n(27.2<\/b><\/p><\/td>

\n)<\/b><\/p><\/td>

\n\u00a0<\/p><\/td>

\n<(100<\/p><\/td>

\n%)<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n198.5<\/b><\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n(15<\/p><\/td>

\n)%<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td><\/tr>\n

\nEBITDA - adjusted*<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n127.0<\/b><\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n(38<\/p><\/td>

\n%)<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n753.3<\/b><\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n(21<\/p><\/td>

\n)%<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td><\/tr>\n

\nEPS attributable to common shareholders (diluted) - reported<\/p><\/td>

\n\u00a0<\/p><\/td>

\n$<\/b><\/p><\/td>

\n(0.47<\/b><\/p><\/td>

\n)<\/b><\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u2014<\/p><\/td>

\n%<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n$<\/b><\/p><\/td>

\n(0.54<\/b><\/p><\/td>

\n)<\/b><\/p><\/td>

\n\u00a0<\/p><\/td>

\n(50<\/p><\/td>

\n%)<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td><\/tr>\n

\nEPS attributable to common shareholders (diluted) - adjusted*<\/p><\/td>

\n\u00a0<\/p><\/td>

\n$<\/b><\/p><\/td>

\n(0.03<\/b><\/p><\/td>

\n)<\/b><\/p><\/td>

\n\u00a0<\/p><\/td>

\n<(100<\/p><\/td>

\n%)<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n$<\/b><\/p><\/td>

\n0.23<\/b><\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n(15<\/p><\/td>

\n%)<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td><\/tr>\n

\nCash flow from operations<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n(203.1<\/b><\/p><\/td>

\n)<\/b><\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n421.8<\/b><\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td><\/tr>\n

\nFree cash flow*<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n(248.7<\/b><\/p><\/td>

\n)<\/b><\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n275.6<\/b><\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td>

\n\u00a0<\/p><\/td><\/tr>\n

\n(a) <\/sup>LFL results for the three and nine months ended March 31, 2026 include immaterial help from Argentina resulting from significant price increases due to hyperinflation.<\/p><\/td><\/tr>\n

\n* These measures, as well as \u201cfinancial net debt,\u201d are Non-GAAP Financial Measures. Refer to \u201cNon-GAAP Financial Measures\u201d for discussion of these measures. Reconciliations from reported to adjusted results can be found at the end of this release.<\/p><\/td><\/tr>\n

\n** Net income for Coty Inc. is net of the Convertible Series B Preferred Stock dividends.<\/p><\/td><\/tr>\n<\/table>

\nThree Months Ended March 31, 2026, Summary Results<\/b><\/p>

\nFor the three months ended March 31, 2026, compared to the three months ended March 31, 2025:<\/p>

    \n
  • \nNet revenue<\/b> of $1,281.6 million decreased 1% on a reported basis and included a 6% benefit from foreign exchange (FX). On a like-for-like (LFL) basis, net revenue declined 7%, which included an estimated 1.4% headwind from the conflict in the Middle East.<\/li>\n
  • \nPrestige net revenue<\/b> of $830.9 million, representing 65% of the Company's total sales, was flat on a reported basis and declined 5% on a LFL basis. This included an estimated 2% headwind from the conflict in the Middle East.<\/li>\n
  • \nConsumer Beauty net revenue<\/b> of $450.7 million, representing 35% of the Company's total sales, decreased 4% on a reported basis and 10% on a LFL basis, which included an estimated 1% headwind from the conflict in the Middle East.<\/li>\n
  • \nReported gross margin <\/b>of 61.8% decreased 230 basis points year-over-year, driven by supply chain cost under absorption due to lower sales, particularly in Consumer Beauty, coupled with elevated excess & obsolescence in Consumer Beauty, and the impact from tariffs on freight costs. Adjusted gross margin<\/b> of 61.8% decreased 250 basis points year-over-year.<\/li>\n
  • \nReported operating loss<\/b> of $372.0 million deteriorated from reported operating loss of $280.4 million in the prior year, and included a $362.8 million impairment charge reflecting a reduction in the fair value of the Company's Consumer Beauty business driven by lower forecasted revenues and a higher weighted average cost of capital, following a significant decline in the Company\u2019s share price over the last three months. Reported loss margin<\/b> of 29.0% compared to reported loss margin of 21.6% in the prior year. Adjusted operating income<\/b> of $72.4 million declined from $147.9 million in the prior year, reflecting lower sales and gross profit. Adjusted operating margin<\/b> of 5.6% contracted by 580 basis points year-over-year.<\/li>\n
  • \nReported net loss<\/b> of $411.4 million compared to reported net loss of $409.0 million in the prior year. Reported net loss margin<\/b> of 32.1% compared to reported net loss margin of 31.5% in the prior year. Adjusted net loss<\/b> of $27.2 million declined from adjusted net income of $6.8 million in the prior year. Adjusted net loss margin<\/b> of 2.1% compared to an adjusted net income margin of 0.5% in the prior year. Reported and adjusted net loss included a $40.7 million negative impact from the mark-to-market on the equity swap, compared with a $60.1 million negative impact from the mark-to-market on the equity swap in the prior year quarter.<\/li>\n
  • \nAdjusted EBITDA<\/b> of $127.0 million decreased 38% from $204.2 million primarily reflecting lower sales and gross profit. Adjusted EBITDA margin<\/b> of 9.9% decreased by 580 basis points.<\/li>\n
  • \nReported loss per share <\/b>of $0.47 was in line with the prior year. Adjusted loss per share<\/b> of $0.03 declined from adjusted earnings per share of $0.01 in the prior year. Reported and adjusted loss per share included a $0.05 negative impact from the mark-to-market on the equity swap, compared with an $0.07 negative impact from the mark-to-market on the equity swap in the prior year quarter.<\/li>\n
  • \nCash flow used in operating activities<\/b> was $203.1 million, compared with $122.5 million in the prior year period. Free cash outflow<\/b> was $248.7 million, compared with $168.4 million in the prior year period.<\/li>\n
  • \nTotal debt<\/b> of $3,216.2 million on March 31, 2026 increased from $3,038.1 million on December 31, 2025. This resulted in a total debt to net income ratio of 6.2x. Financial net debt<\/b> of $2,959.1 million increased from $2,601.4 million on December 31, 2025. This resulted a financial leverage ratio (net debt to adjusted EBITDA) of 3.4x.<\/li>\n<\/ul>

    \nNine Months Ended March 31, 2026, Summary Results<\/b><\/p>

    \nFor the nine months ended March 31, 2026, compared to the nine months ended March 31, 2025:<\/p>