Coty Inc. announced its results for the first half and second quarter of fiscal year 2025, which ended on December 31, 2024. Across both periods, Coty delivered strong gross and operating margin expansion while continuing to invest behind its brands and execute across its strategic growth pillars.
 
Sue Nabi, Coty’s CEO, said:
 
“As we are now midway through our fiscal year, it is clear that FY25 is shaping up to be a pivotal year. On the one hand, the global beauty market continues to grow at a healthy pace, even if growth has moderated off of the elevated levels of the last few years, which benefited from more material pricing increases. And in this backdrop, fragrances of all price points continue to outperform most other beauty categories, which strongly benefits Coty’s business as fragrances account for over 60% of our revenues and an even bigger portion of our profits.”
 
Overall, net revenue decreased by 1% year-over-year in 1H25. 2Q25, Coty’s reported net revenue declined 3% on a reported basis and included a 2% headwind from FX.

Results by Segment

In 1H25, the Prestige segment’s net revenue grew 2% on a reported basis, which included a 1% negative impact from FX and a 1% headwind from the divestiture of the Lacoste license. The majority of Coty’s leading prestige fragrance brands grew by a mid-single-digit to double-digit percentage year-over-year, with solid growth in prestige fragrance volumes in 1H25
 
In Q2, Prestige net revenue decreased 1% on a reported basis, which included a 1% headwind from FX and a 1% negative impact from the divestiture of the Lacoste license. On a LFL basis, net revenue increased 1%, supported by growth in Coty’s prestige fragrance category, partially offset by prestige cosmetics. 
 
Despite a strong sell-out in Coty’s prestige fragrances, Coty’s Prestige segment reported net revenue was impacted by broader headwinds in China and Travel Retail Asia, with continued tight inventory management and lower than anticipated replenishment orders by retailers in the U.S., Europe, and Australia.
 
In 1H25, Consumer Beauty’s net revenue declined by 6% on a reported basis, which included a 4% negative impact from FX. Consumer beauty reported net revenue decline in body care and mass color cosmetics partially offset by reported net revenue growth in mass fragrance and mass skin care. 
 
In Q2, Consumer Beauty’s net revenue declined 8% on a reported basis and was impacted by a 4% headwind from FX, with LFL sales declining 4%. In 2Q25, Consumer Beauty reported net revenue declines in color cosmetics and body care were partially offset by growth in mass fragrances.

Results by Region

EMEA net revenue increased by 4% on a reported basis and 5% on an LFL basis in the first half and increased 2% on both a reported basis and LFL basis in Q2. The reported net revenue growth in EMEA in each of these periods was supported by growth across several European markets, including the U.K., Ireland, Spain, and Portugal, coupled with strong growth in Africa and adding a new export distributor. 
 
In the first half, net revenue decreased by 5% on a reported basis but grew by 1% on an LFL basis in the Americas. In 2Q25, Americas’ net revenue declined 7% on a reported basis and by 1% on an LFL basis. 
 
The Americas region was impacted by the softness in the color cosmetics market in the U.S. and lower body care revenue in Brazil. The Americas LFL net revenue included a 3% contribution from Argentina, which experienced hyperinflation in Q2 and 1H25. 
 
In 1H25, Asia Pacific net revenue decreased by 8% on a reported and LFL basis. Asia Pacific net revenue declined 11% on both a reported and LFL basis in Q2. The reported net revenue in each of these periods was lower year-over-year due to the challenging dynamics impacting the market in the Chinese mainland and the regional Travel Retail channel, impacted by significant retailer inventory reduction.
 
Nabi added, 
 
“While the uncertain market environment may weigh on trends in the near term, our financial equation is now stronger than it has been in the last four years, and we will see outsized benefit from our healthier leverage levels and cash generation, which will fuel EPS growth and our Total Shareholder Return. As we look to the exciting brand initiatives and distribution opportunities on track for FY26 and beyond, coupled with the initial launches in the next couple of year of products under our new and expanded licenses including Swarovski, Marni, Etro, and Marc Jacobs Makeup, we remain confident in Coty’s ability to accelerate sales growth and outperform the beauty industry over the coming years, all while steadily expanding margins and cash flow, and significantly growing EPS.”

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