Coty Announces First Quarter Fiscal Year 2027 Results
Key Highlights
- ➤Net revenue $1,555.2 million, down 1% reported and 2% like-for-like
- ➤Adjusted EPS $0.16, up 33% year over year and ahead of guidance
- ➤Top 6 Prestige brands returned to 5% like-for-like growth
- ➤Free cash flow $84.6 million, up from $11.2 million year over year
- ➤Marc Jacobs license extended to a 40-year duration
- ➤Q2 adjusted EPS expected at $0.16 to $0.18, excluding equity swap
Expert Statements
Markus Strobel, Executive Chairman and Interim Chief Executive Officer of Coty
“Our first quarter results were ahead of expectations on sales, adjusted EBITDA, and EPS, alongside a significant improvement in free cash flow, supported by the focus of Coty.Curated,”
Markus Strobel, Executive Chairman and Interim Chief Executive Officer of Coty
“Our like-for-like sales decline narrowed to 2%, broadly in line with the fourth quarter and a clear improvement from the declines of 6% and 4% in the first and second halves of fiscal 2026, reflecting improvements in key markets like the U.S., Asia Pacific, and Latin America.”
Markus Strobel, Executive Chairman and Interim Chief Executive Officer of Coty
“While our progress in the first quarter is encouraging, we have more work to do to translate green shoots into a broad-based recovery.”
Markus Strobel, Executive Chairman and Interim Chief Executive Officer of Coty
“Our Coty.Curated framework is beginning to deliver results.”
Markus Strobel, Executive Chairman and Interim Chief Executive Officer of Coty
“I am proud that we have extended the Marc Jacobs license, securing a 40-year license duration for the brand.”
Markus Strobel, Executive Chairman and Interim Chief Executive Officer of Coty
“The prestige and mass beauty markets continue to grow despite macroeconomic uncertainty, while our overall sell-out still trails the market in both divisions.”
Markus Strobel, Executive Chairman and Interim Chief Executive Officer of Coty
“Our priority is to translate investment into stronger sell-out and market share gains, with market share embedded in how we reward performance across the organization.”
Markus Strobel, Executive Chairman and Interim Chief Executive Officer of Coty
“We remain committed to completing the strategic review by the end of calendar 2026.”
Markus Strobel, Executive Chairman and Interim Chief Executive Officer of Coty
“As we’ve previously shared, FY27 will be a transition year.”
Markus Strobel, Executive Chairman and Interim Chief Executive Officer of Coty
“We know confidence is earned through consistent delivery, and our goal is to steadily improve execution and translate it into shareholder value in the years ahead.”
Soraya Benchikh, Chief Financial Officer of Coty
“I joined Coty at a pivotal moment, with clear priorities to deliver quality growth, improve productivity to fund disciplined reinvestment, and strengthen cash generation and conversion.”
Soraya Benchikh, Chief Financial Officer of Coty
“The first quarter shows encouraging early progress on each, although sustainable improvement will take time.”
Soraya Benchikh, Chief Financial Officer of Coty
“We delivered adjusted EBITDA ahead of our guidance, supported by better-than-expected sales and cost control, while continuing to invest in our brands.”
Soraya Benchikh, Chief Financial Officer of Coty
“The year-over-year decline in adjusted EBITDA moderated to 7% from steeper declines in fiscal 2026.”
Soraya Benchikh, Chief Financial Officer of Coty
“On cash, better payables and receivables performance helped improve free cash flow to $85 million.”
Soraya Benchikh, Chief Financial Officer of Coty
“Our objective is to create value over time through a virtuous cycle: focused investment drives quality growth, while better gross margins and a more efficient cost base strengthen earnings.”
Soraya Benchikh, Chief Financial Officer of Coty
“Converting those earnings into cash supports deleveraging and reinvestment in the next phase of sustainable growth.”
Soraya Benchikh, Chief Financial Officer of Coty
“This is the model we are focused on executing with discipline and accountability, quarter after quarter.”
Q1 Profit and EPS Ahead of Guidance; Modest Sales Decline of 1%, with LFL Sales Down 2%
Operating Cash Flow Up $65 Million YoY to $130 Million, with Free Cash Flow of $85 Million
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