Coty Reports Q1 Fiscal 2027 Results with Mixed Revenue and Improved Cash Flow
Coty (COTY) reported first-quarter fiscal 2027 results characterized by a slight decline in net revenue to $1,555.2 million, representing a 2% decrease on a like-for-like basis. The Prestige segment saw moderate softness in fragrances and skincare, while the Consumer Beauty segment faced challenges in color cosmetics. Despite these headwinds, adjusted net income rose to $146.1 million, bolstered by an equity swap mark-to-market benefit. The company demonstrated strong balance sheet management, reducing financial net debt by over $300 million since June 2026 and significantly increasing free cash flow to $84.6 million. While regional performance was mixed—with growth in Asia Pacific offset by declines in EMEA—Coty secured long-term stability through a 40-year Marc Jacobs license extension and received $250 million in upfront proceeds related to the Gucci license exit.
Topics: EBITDA decrease EPS increase Free Cash Flow growth Gross Margin compression Revenue decline