The American cosmetics and fragrance group Coty (Marc Jacobs, Burberry fragrances, Calvin Klein, etc.) reported a 64% increase in profit for the July–September period, supported by demand in its key markets and proceeds from the sale of one of its licenses.

Currently undergoing a transformation, the group posted a profit of USD 106 million in the first quarter of its 2026/2027 fiscal year, compared with USD 65 million a year earlier, according to a press release issued on Wednesday, November 4.

However, sales continued to decline. From July to September, Coty generated revenue of USD 1.55 billion, down 1% year-on-year and 2% on a like-for-like basis. Nevertheless, the group’s performance slightly exceeded the expectations of a consensus of analysts surveyed by Bloomberg. More importantly, it marked an improvement over the previous two quarters, driven by progress in its key regions: the United States, Latin America, and Asia-Pacific, said Markus Strobel, Executive Chairman and interim CEO.

Last year, Coty reported a net loss of USD 618 million, while sales fell 2% to USD 5.8 billion. The company launched a strategic review in 2025, which is expected to be completed by the end of 2026. The process includes cost-cutting measures and debt reduction.

“While our progress in the first quarter is encouraging, we have more work to do to translate green shoots into a broad-based recovery,” emphasized Markus Strobel. “As we’ve previously shared, FY27 will be a transition year. We expect the recovery to be uneven, and implementation will take time," he added.

Coty also announced a 40-year extension of its licensing partnership with Marc Jacobs, which began in 2003.

The American group, which has also held the Gucci beauty license since 2016, announced in July that it would transfer the license to the French luxury group Gucci one year ahead of schedule, for approximately USD 400 million. Initial proceeds from the transaction have enabled Coty to reduce its debt by USD 300 million since June, according to the press release.

The cosmetics market remains robust, according to the company. "Consumer demand for beauty remains resilient, with more moderate but continued growth in fragrances and cosmetics," it stated.

Against this backdrop, Coty expects like-for-like sales growth in the six main brands of its prestige division in the second quarter of fiscal 2027. Overall revenue, however, is still expected to decline "by a few percent, in line with the last two quarters."