Coty Inc. has reported strong second quarter fiscal year 2026 results, showing continued momentum across its Prestige and Consumer Beauty segments as international markets and premium fragrance demand drove solid sales and profit growth.
The beauty giant posted revenue of $1,678.6 million increased, marking a 1% like for like increase, reflecting balanced growth across both divisions and all major regions. According to the company’s release, this performance was particularly propelled by expanding luxury fragrance sales and robust gains in Europe and the Middle East.
Prestige Beauty Leads Growth
The Prestige business continued to outperform expectations, delivering a 7% like for like increase driven by blockbuster fragrance launches and strong momentum in skin and body care. The company noted that this segment remains a cornerstone of its growth strategy, now accounting for over 60% of total sales.
“I’m truly excited and energized to join Coty at this pivotal moment,” said Markus Strobel, Executive Chairman and Interim Chief Executive Officer.
Fragrance remained the company’s strongest performer, highlighting hits from Burberry Goddess, Gucci Flora, and Chloé Atelier des Fleurs. New fragrance launches continue to play a key role in Coty’s brand portfolio expansion and pricing power, as luxury consumers continue to prioritize premium scents worldwide.
Consumer Beauty Returns to Stability
The Consumer Beauty division also demonstrated ongoing stability with a 3% like for like increase in sales, supported by stronger performances from mass fragrance and color cosmetics. Gains in this category were led by improvements in CoverGirl, Max Factor, and Rimmel, supported by bestselling mascara and foundation innovations.
The company stated that improved in store visibility and better shelf execution are delivering tangible returns, particularly in the United States and Europe, two of the brand’s largest markets.
Margins and Earnings Strength
On the profitability front, gross margin expanded by 70 basis points to 65.2%, marking another quarter of improvement despite currency headwinds and inflationary pressures. Adjusted operating income rose 9% to $346.6 million, while adjusted EPS came in at $0.20, up from $0.17 a year earlier.
Coty reaffirmed its full year 2026 guidance, targeting a 6% to 8% like for like sales growth and continued operating margin expansion. The company also reiterated its focus on deleveraging, with a goal of reducing its net debt to EBITDA leverage ratio to below 3x by the end of the fiscal year.
Innovation and Sustainability in Focus
Beyond financial metrics, Coty continues to emphasize innovation and sustainability as key pillars of its long-term strategy. During the quarter, the company strengthened its clean beauty and refillable packaging lines, building on its “Beauty That Lasts” sustainability framework.
The firm’s recent initiatives, including the rollout of refillable fragrance bottles and the growth of its Lancaster suncare brand, illustrate Coty’s ambition to lead in both luxury innovation and environmentally conscious beauty.
Looking Ahead
With momentum across core categories and markets, Coty remains positioned for another year of strong operational performance. The company’s sustained investment in high growth brand segments and fragrance launches underscores its long term vision of becoming a global beauty leader across prestige and consumer lines.
As Markus Strobel added, “ having visited our largest markets and key sites, it’s very clear to me that Coty has many top notch assets and competitive advantages: highly attractive brands, best in class fragrance innovation capabilities, a vertically integrated business model, and a creative, entrepreneurial organization.”
