On February 19, 2025, Coty’s chief executive officer, Sue Nabi, and chief financial officer, Laurent Mercier, presented updates on the company’s performance at the 2025 Consumer Analyst Group of New York Conference (CAGNY).
In the update, the company officials showed that Coty has outpaced the beauty market in nine of the past 14 quarters. Fragrance accounts for over 60% of the company’s sales with its robust brand portfolio. Further, Coty expanded its gross margins by 400 basis points and adjusted EBITDA margins by 130 basis points. The company hopes to continue this steady expansion along with declining leverage by the end of 2026.
“The beauty market has evolved considerably since we first unveiled our strategy over three years ago,” said CEO Sue Nabi. “We see significant growth opportunities for our core brands in the coming years, particularly in the fragrance category, where structural tailwinds are supporting category growth. Our fragrance portfolio delivered outperformance at all price points in the first half of this year, driven by strong momentum across iconic brands including Hugo Boss, Burberry, Chloe and Marc Jacobs. With 2025 emerging as a key year for the sector, we are confident in our ability to fuel Coty’s outperformance of the global beauty market and deliver long-term growth, leveraging our multi-category beauty expertise, track record of innovation and IP utilization and diversified portfolio of brands across the price spectrum.”
Earlier this month, Coty released its sales results for the first half fiscal year 2025, which ended December 31, 2024. While the company’s net revenue decreased by 1% year-over-year in 1H25, the prestige fragrance category continued to outperform the overall beauty market in the second quarter.
