Coty revenue decline H1 2026

Coty, a leading global player in the beauty industry, continues to face tough financial times, reporting a decline for the first half of its 2026 fiscal year.

The beauty company posted $3.26 billion in revenue for the first half of fiscal 2026, down 2.56% from last year, following the departure of the Algerian-born French tycoon Sue Youcef Nabi. Softer market demand and high retailer inventories contributed to the decline, signaling challenges for the global beauty leader.

The Prestige segment, responsible for 68% of sales, generated $2.20 billion, down 1% reported and 4% like-for-like, showing resilience despite weak market conditions. Consumer Beauty revenue fell to $1.05 billion, down 5% reported and 8% like-for-like, dragged by lower cosmetics and fragrance sales.

Operating income and profitability impacted
Operating income fell sharply to $333.2 million from $506 million the previous year, a 34% decline, resulting in a net loss of $62.3 million.

Reported EPS declined to a $0.07 loss per share, partly affected by equity swap impacts. Adjusted operating income also fell 19% to $514.8 million, with a margin of 15.8%.

Strategic initiatives and outlook
In a strategic move to fill the leadership gap left by long-serving CEO Youcef Sue Nabi, who led Coty from 2019 through December 2025, the company appointed Markus Strobel as Interim CEO and Executive Chairman, effective January 1, 2026.

Markus Strobel, Interim CEO and Executive Chairman

Strobel brings over 30 years’ experience from Procter & Gamble, overseeing global skin and personal care brands. Coty also sold its remaining 25.8% Wella stake to KKR for $750 million upfront, using proceeds to reduce long-term debt.

Looking ahead, Coty plans to leverage innovation pipelines, optimize profitability, and strengthen margins, targeting a recovery in the latter half of 2026. The company also maintained recognition on the CDP Climate A List while reviewing its Consumer Beauty portfolio.