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Coty Reinstates 2026 Profit Outlook, Nears End of Consumer-Beauty Review

Cost cuts, fewer launches, simpler marketing underpin the guidance.

Covergirl makeup, owned by Coty Inc., is seen for sale in Manhattan, New York City, U.S., February 7, 2022. REUTERS/Andrew Kelly/File Photo

Overview

  • Coty, which reinstated its 2026 adjusted EPS target on Tuesday, guided to 33 to 35 cents per share, topping the 27-cent LSEG consensus.
  • The company said its assessment of the consumer beauty portfolio is close to complete and could lead to brand sales, with CoverGirl and Rimmel flagged in prior disclosures.
  • For the quarter ended March 31, revenue reached $1.28 billion as like-for-like sales fell 7 percent, and the company reported an adjusted loss of 3 cents per share.
  • Management said the Middle East trimmed third-quarter sales by an estimated 1.4 percent and expects a 2 to 3 percent hit in the fourth quarter because fragrance demand there weighs on its prestige lines.
  • Interim CEO Markus Strobel outlined steps to lift margins that include cutting smaller product launches, streamlining the operating model, and using AI to lower marketing asset production costs.