Coty feels the beauty slowdown as growth in fragrance fails to offset declines in color cosmetics

1 month ago 14

Despite the continued growth in fragrance, Coty’s results for the second quarter of fiscal year 2025 failed to meet the group’s expectations. On Monday, the beauty conglomerate reported a 3% decline in net revenue for its second quarter to $1.6 billion. Coty CEO Sue Nabi said the conglomerate — which owns the likes of designer beauty brands like Gucci and Marc Jacobs, as well as Kylie Cosmetics — remains optimistic. And she called 2025 a “transition year.”

“While the complex backdrop may weigh on trends in the near term, we are confident in our ability to continue to deliver strong margin expansion, and with exciting brand initiatives and distribution opportunities on track for fiscal year 2026 and beyond,” said Nabi during a prepared set of remarks released on Monday.

Like Estée Lauder, Coty attributed declines in revenue to a difficult travel retail market in Asia. The company reported an 11% decline in net revenue in Asia Pacific in the second quarter. Net revenue fell in the Americas, as well, by 7%, but grew in EMEA by 2%.

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