On May 6, 2025, Coty announced the financial results for the first nine months and third quarter of fiscal year 2025, ending March 31, 2025. According to the report, net revenue for the third quarter of the fiscal year was $1.299 million, a 6% decline from the previous year period. Prestige net revenue over this period was $829 million with a 4% decrease and consumer beauty net revenue was $470 million with a 9% decrease. The company attributes these decreases to headwinds caused by fluctuations in exchange rates.
“Across economic cycles, beauty has remained resilient for decades,” said chief executive officer Sue Nabi. “Even in this challenging landscape, we have significantly strengthened our strategic, operational and financial fundamentals, driving margin expansion, stronger cash flow generation and substantial deleveraging over the past four years. While we are not satisfied with our net revenue performance, Coty’s strong fundamentals, coupled with our multi-pronged attack-plan for acceleration innovation, distribution and efficiencies, gives us confidence for the years ahead.”
In addition to its financial results, Coty announced its multi-pronged plan for fiscal year 2026 and beyond for both its prestige and consumer beauty businesses. These plans include blockbuster launches in 2026, extension of one of the major brands into the United States, a new brand launch on Amazon, new innovations under key mass fragrance brands and expansions into body mists and other adjacent products.
“2025 remains a transition year for Coty,” Nabi explained. “In Prestige, we are absorbing the triple-headwind of a slowing fragrance market, lapping a blockbuster innovation year and depleting elevated retailer inventory, all of which was particularly acute in the U.S. We are laser-focused on entering 2026 with alignment between sell-in and sell-out, to create a healthy baseline for growth. In Consumer Beauty, we have begun recalibrating our business in response to diverging market trends between cosmetics on the one hand and fragrances on the other hand, taking into account our relative strengths. Our goal is to strengthen our cosmetics business while making it more profitable, while in parallel over-driving our mass fragrances business where we have leadership and a strong margin profile.”
