The U.S. cosmetics and fragrance group Coty announced on Monday, February 7, a 3% drop in its sales in the second quarter of its staggered financial year.
The group said its results were impacted by a slowdown in the mass beauty market, particularly in color cosmetics, as well as continued headwinds in the Asia Pacific region. While the global fragrance market remained robust, with Coty’s prestige fragrance portfolio growing sell-out at a high single digit rate, it was not enough to offset declines in other segments.
“As we are now midway through our fiscal year, it is clear that FY25 is shaping up to be a pivotal year,” said the group’s CEO, Sue Nabi, in a media statement.
“On the one hand, the global beauty market continues to grow at a healthy pace,” she emphasized, adding that “on the other hand, the pressure in pockets of our business,” notably in China, travel retail in Asia, and in consumer beauty in the U.S., “impacted us even more significantly in Q2.”
“These headwinds are temporary and we should return to stronger sales growth as we enter FY26,” added Sue Nabi.
Coty reported USD 1.67 billion in sales (-3%) in its second quarter, from October to December, driven by perfumes. Sales fell 1% to USD3.34 billion in the second half.
“Fragrance represents more than 60% of our activity,” the group’s administrative and financial director Laurent Mercier stressed to AFP, “and we are seeing growth of close to 10%.”
In the second quarter, the group’s sales in the Americas region fell by 7% to $639 million, those in the Asia Pacific region by 11% to $191.5 million. Sales in the Europe, Middle East, Africa region increased by 2% to $839.8 million.
In December, Coty announced a long-term beauty licensing agreement with crystal house Swarovski to develop and market a new fragrance.
