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Coty was hit by a raft of challenges in fiscal 2025, including dampened demand from consumers in the US and Asia, and “innovation fatigue” in colour cosmetics.
The Paris-based beauty conglomerate said on Thursday that its revenues for the full year ended 30 June fell 2 per cent year-on-year on a like-for-like basis to $5.89 billion. Fourth-quarter revenues were down 9 per cent to $1.25 billion. Shares fell almost 20 per cent in pre-market trading on Thursday.
“Coty is operating from a position of reinvigorated strength after five years of transformation and proven execution,” CEO Sue Nabi said in a statement. “In full year 2025, despite headwinds from US softness, retailer destocking, fragrance phasing off a strong 2024, and pressure in mass cosmetics, we moved with speed and focus to return Coty to a path of consistent and profitable growth.”
“We realise our results are not satisfying,” Nabi conceded on Thursday’s investor call. “We are acting with urgency, especially in the US. We have taken all the required action and we have a clear plan with first and very promising green shoots. The company is now more focused and financially stronger than ever,” she said. “Of course, no one is immune to relativity, but these results do not reflect the potential and value of the business we are building, so we are confident that the real strength of the company will be recognised and visible as quickly as possible.”
In the prestige division, which includes licensees Marc Jacobs, Burberry and Jil Sander, full-year net revenue was flat year-on-year at $3.82 billion. Revenue from the consumer beauty division, which includes brands such as Covergirl, Rimmel and Max Factor, was down 5 per cent year-on-year to $491.8 million.
By region, the Americas were down 3 per cent to $2.37 billion in fiscal 2025. America sales were impacted by reduced net revenue across consumer beauty in the US, driven by ongoing weakness in the mass colour cosmetics market. EMEA (Europe, the Middle East and Africa) revenues were up 1 per cent to $2.81 billion. Asia-Pacific fell 7 per cent to $708.1 million. The Chinese beauty market is gradually improving, said CFO Laurent Mercier, thanks to the performance of prestige beauty.