Coty.Curated, the French beauty group’s turnaround framework, kicked into motion last fiscal year. A redesign of the organization and cost structure hopes to improve conversion through reinvestment into its portfolio of brands.
The strategy is paying off the most in the prestige segment. Net revenues declined 1% to $1.1 billion in Q1, a contrast to the same quarter a year prior (-4%), and representing 68% of total sales. “We have increasingly concentrated investment behind our top six prestige brands — Burberry, Hugo Boss, Calvin Klein, Marc Jacobs, Chloé, and Kylie Cosmetics — which represented 73% of prestige sales in Q1,” Strobel noted, highlighting the success of new launches including Boss Bottled Beyond for Her, Burberry Goddess Amber Vanilla, Mood Stones by Kylie Jenner, and makeup from Marc Jacobs Beauty.
Earlier this week, Coty announced a 40-year extension of its Marc Jacobs license, which it has held since 2003. The plan is to expand the brand across multiple categories following the successful relaunch of Marc Jacobs Beauty in May. (The beauty offshoot was discontinued in 2021, once its licensing deal with LVMH-owned Kendo ended.)
Strobel said: “The recent launch of Marc Jacobs Beauty makeup is off to a strong start across the US, the UK, Canada, and Australia. The agreement provides Coty with a strong platform to build on that momentum while enhancing the long-term visibility of Coty’s Prestige portfolio.”
The recovery of consumer beauty — including CoverGirl, Rimmel, and Sally Hansen — is slightly slower. While the decline in like-for-like sales narrowed to 3% from 8% in the first half of fiscal 2026, the segment remains negative. Net revenues reached $496.8 million in Q1, declining 3% on a like-for-like basis.
Asia-Pacific led growth across both segments, with sales up 8% to $192 million, driven by higher sales in China, Southeast Asia, and Asia travel retail. Sales were flat across the Americas at $653 million, with particular momentum in Brazil. EMEA (Europe, the Middle East, and Africa) revenues fell 5% to $710 million; the group cited lower sales in the Middle East and Europe.
Coty expects to see a low single-digit decline in Q2, consistent with the last two quarters. As for the full year, the company is still withholding its projection as it gears up to claw back the negative growth seen throughout 2026.
