Coty’s newly minted interim executive chairman and interim CEO Markus Strobel presented the company’s latest earnings to the market Thursday and stressed that there is much to be done to turn the company’s fortunes around.
“It’s very clear to me that Coty has many top-notch assets and competitive advantages: highly attractive brands, best-in-class fragrance innovation capabilities, a vertically integrated business model, and a creative, entrepreneurial organization,” said Strobel, who was appointed interim CEO in December, taking over from Sue Nabi.
“At the same time, our financial performance over the past year-and-a-half has been disappointing, and our current share price reflects that reality. Both things are true: Coty has outstanding assets and capabilities, yet we have not been delivering at the level we should.”
To that end, following the likes of the Estée Lauder Cos., which has its “Beauty Reimagined” turnaround strategy, he unveiled “Coty Curated,” detailing a plan for sharper priorities, more focused investments, improved execution, and increased support behind its core businesses.
At the same time, he said: “We are continuing our portfolio review to identify opportunities to unlock shareholder value in both the near and long term, complemented by other value-driving opportunities.”
Its consumer brands division is the subject of its strategic review for its mass color cosmetics business, in addition to its operations in Brazil.
In December, Coty sold its remaining 25.8 percent stake in Wella to KKR. According to a Reuters report, KKR is readying the maker of Clairol, OPI and Ghd products to float in the U.S. as early as this year. It would value the company at much more than the $4.3 billion KKR paid for it, Reuters said, citing sources familiar with the operation.
For the second quarter of fiscal year 2026, ended Dec. 31, Coty’s net revenue was $1.7 billion, up 1 percent from a year earlier.
Prestige net revenue was $1.13 billion, up 2 percent. Consumer beauty net revenue came in at $545 million, down 2 percent.
It reported a net loss of $126.9 million compared to net income of $20.4 million in the prior year. Adjusted earnings per share was 14 cents, improved from 11 cents in the year earlier.
Citing “the complex beauty market backdrop and Coty’s leadership transition,” Coty is withdrawing its prior fiscal year ’26 guidance for earnings before interest, taxes, depreciation and amortization and is providing guidance solely for the third quarter.
Coty expects like-for-like third-quarter revenues to decline by a midsingle-digit percentage, primarily due to weakening in consumer beauty sales trends.
