The U.S. cosmetics and perfume group Coty expects to recover in 2006 after a difficult 2024/2025 financial year due to “headwinds.”
The group posted a net loss of US$ 381 million for the past fiscal year (ended June 30), compared with a net profit of US$ 76 million a year earlier, according to a statement released Wednesday.
Its sales fell 4% to $5.9 billion.
“In [Fiscal Year] 2025, despite headwinds from U.S. softness, retailer destocking, fragrance phasing off a strong FY24, and pressure in mass cosmetics, we moved with speed and focus to return Coty to a path of consistent and profitable growth,” said Sue Nabi, Coty’s CEO.
Productions transferred to the U.S.
“We expect our organizational changes will start yielding results in the coming year, there is more to do,” she added, forecasting “a return to growth in the second half of 2026.”
During the 2024/2025 fiscal year, Coty established a new management team in the United States, increased productivity, and reduced costs.
In response to US tariffs, the group also transferred the production of its “mass fragrances, entry prestige fragrances,” and other lines sold in the country to its US factory.
The gradual improvement in sales expected in 2026 is “underpinned by multiple levers,” including several fragrance launches, a category that includes brands such as Gucci, Boss, and Burberry, and which accounts for 60% of revenue and “an even bigger portion” of Coty’s profits, according to the group’s CEO.
“Second, we will continue to grow Coty’s footprint and diversification in a limited number of structurally profitable and growing beauty categories and geographic markets at scale,” she added.
“Skincare remains another key focus, and we will steadily build this business, while remaining vigilant with our investment levels,” she detailed.
