Coty reportedly posted a 64% increase in profit over the July to late September period, according to a statement published on Wednesday, November 4. First-quarter profit for the staggered 2026/2027 fiscal year would thus stand at $106 million, compared with $65 million a year earlier.

A slight decline in revenue

Quarterly revenue reportedly came to $1.55 billion. Last year, Coty had posted a loss of $618 million, on annual sales of $5.8 billion.

Sale of the Gucci licence eases debt

Coty had announced in July the resale of the Gucci beauty licence, which it had held since 2016, for approximately $400 million. The initial payments linked to this sale reportedly allowed the group to reduce its debt by $300 million since June, according to the statement.

At the same time, Coty announced the extension of its licensing partnership with Marc Jacobs, initiated in 2003, for a period of 40 years.

A recovery deemed « encourageant » but incomplete

Markus Strobel, executive chairman and interim chief executive officer, stated: « Si nos progrès au premier trimestre sont encourageants, nous devons encore travailler pour transformer ces premiers signes de reprise en un redressement large et durable ». He added: « Comme nous l’avons déjà indiqué, l’exercice 2027 sera une année de transition. Nous anticipons une reprise inégale, et la mise en œuvre prendra du temps ».

Coty would nonetheless have delivered a performance slightly above the expectations of a consensus of analysts polled by Bloomberg. The group also stated: « La demande des consommateurs pour les produits de beauté reste robuste, avec une croissance plus modérée mais toujours soutenue dans les parfums et les produits cosmétiques ».

What comes next

For the second quarter of its 2027 fiscal year, Coty expects, on a like-for-like basis, growth in sales of the six main brands of its prestige division, though with an overall revenue decline « de quelques pourcents, en ligne avec les deux derniers trimestres ». The group had launched a strategic review in 2025, which is expected to be finalised by the end of 2026.