Coty Q3 2025 Earnings Report
Key Takeaways
Coty reported a net loss of $409 million in Q3 2025 with revenue declining 6% year-over-year. The company emphasized cost control, adjusted operating income growth, and strategic plans for FY26 amid continued market challenges.
Revenue fell 6% to $1.299 billion, with FX headwinds contributing 3% to the decline.
Adjusted EPS was $0.01, while GAAP EPS stood at -$0.47.
Consumer Beauty revenue declined 9% amid weakness in color cosmetics, particularly in the U.S.
Coty launched the next phase of its 'All-in to Win' program aiming for $500 million in savings through FY27.
Coty
Coty
Coty Revenue by Segment
Coty Revenue by Geographic Location
Forward Guidance
Coty expects high-single-digit LFL sales decline in Q4 FY25, but forecasts gradual improvement in FY26 led by blockbuster launches, cost savings, and enhanced execution.
Positive Outlook
- Blockbuster launches planned in both H1 and H2 FY26.
- New brand expansion into U.S. and Amazon launch in fall.
- Robust plans in both Prestige and Consumer Beauty to capture demand shifts.
- All-in to Win program expected to generate $500M in savings by FY27.
- Continued progress in ESG, with upgraded ratings from MSCI and Sustainalytics.
Challenges Ahead
- Expected LFL sales decline in Q4 FY25 due to weak retailer inventory dynamics.
- Challenging U.S. market impacting both Prestige and Consumer Beauty segments.
- Gross margin contraction in Q3 impacted by normalization from prior high levels.
- High restructuring and impairment charges continued to pressure profitability.
- FX remains a 3% headwind to reported sales for the remainder of FY25.
Revenue & Expenses
Visualization of income flow from segment revenue to net income