Coty said sales declined 6% to $1.58 billion in the first quarter of fiscal 2026, ended September 30 2025, in line with analyst expectations.

Adjusted EBITDA declined 18% year-on-year, with gross margin decreasing from 65.5% to 64.5% to reflect lower sales and tariff headwinds — though CEO Sue Nabi tells Vogue Business that the company’s US-based factories and price increases across prestige fragrances have allowed it to mitigate some of the impacts. Coty expects gradual improvement in sales trends throughout the fiscal year, with Q2 like-for-like sales expected to be at the better end of the -3% to -5% outlook.

In October, Kering announced its plans to sell its beauty division to L’Oréal , which includes a transfer of the Gucci Beauty license from Coty to L’Oréal when it ends in 2

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