Coty anticipates sales drop in 2025 after a further decline in Q3

Coty anticipates sales drop in 2025 after a further decline in Q3

In the third quarter of its staggered fiscal year, the U.S. group — also listed in Paris since September 2023 — saw its revenue decline by 6% to $1.29 billion, due to ” an uncertain market backdrop and foreign exchange headwinds,” according to the press release published on the evening of Tuesday, May 6.

Coty anticipates a 2% sales drop in 2025, calling it a “a transition year.”

Over this period, Coty also recorded a net loss of USD 409 million, compared to a net profit of USD 0.5 million in the third quarter of the previous fiscal year.

The group attributes the decline, among other factors, to a EUR 212.8 million asset impairment in its Consumer Beauty division, citing “the more challenged category trends in the U.S. and Europe,” along with restructuring costs.

“While we are not satisfied with our net revenue performance, Coty’s strong fundamentals, coupled with our multi-pronged attack-plan for accelerating innovation, distribution and efficiencies, gives us confidence for the years ahead,” commented Sue Nabi, Coty’s CEO.

Coty indicates that the “next phase” of its strategic plan, dubbed “All in to Win,” is expected to generate additional savings of USD 370 million in fiscal years 2026 and 2027, which should notably “offset the impact” from the tariffs announced by the Trump administration, according to the press release.

Coty believes it “remains relatively better positioned to weather the tariff headwinds” given its “geographically diverse sales base, manufacturing, and sourcing,”

The group describes 2025 as “a transition period,” both in the third and fourth quarters. “The continuation of current category trends, coupled with Coty’s active interventions to clean up the baseline of the business to prepare for healthier FY26 business improvement, are driving Coty’s expectation for a high single digit LFL decline in sales in Q4,” Coty said. This will translate to a 2% decline in like-for-like (LFL) sales in fiscal year 2025.

Coty also expects “roughly flattish EBITDA” in 2025.

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