Coty Inc. (NYSE: COTY): Corporate Profile & Financial Analysis
Source: Coty Inc. Form 10-K Fiscal Year Ended June 30, 2026
📋 Quick Facts / Company Snapshot
| Quick Fact | Company Detail |
|---|---|
| Official Name | Coty Inc. |
| Ticker Symbol | COTY |
| Primary Exchange | The New York Stock Exchange |
| Principal Executive Offices | 350 Fifth Avenue, New York, NY 10118 |
| Industry / Sector | Beauty / Cosmetics, Fragrance, Skin and Body Care |
| Founded | 1904 |
| Total Employees | Approximately 11,335 permanent employees in over 37 countries |
| Key Locations | Amsterdam, New York, Paris, Singapore, Barcelona, Ashford, Chartres, Granollers, Hunt Valley, Monaco, Sanford, Senador Canedo, Morris Plains |
| Patents | Proprietary technology, patent-pending or proprietary formulations, copyrights, and design rights |
| Principal Subsidiaries | Coty B.V., HFC Prestige Products, Inc., HFC Prestige International U.S. LLC |
| Parent Company | JAB Beauty B.V. (Majority Stockholder) |
| Chief Executive Officer | Markus Strobel (Executive Chairman and Interim Chief Executive Officer) |
| Chief Financial Officer | Laurent Mercier |
| External Website | www.coty.com |
🏢 The Corporate Identity: Who They Are & Where They Came From
The Big Picture
Founded originally in Paris in 1904, Coty Inc. has evolved into one of the largest and most influential beauty companies in the world. Operating at the intersection of prestige and mass beauty markets, Coty possesses an iconic portfolio of brands spanning fragrance, color cosmetics, and skin and body care. The company’s products are marketed, sold, and distributed across approximately 122 countries and territories, supported by dedicated local sales forces in most significant markets.
Coty maintains a dual-listing structure for its Class A Common Stock, trading on The New York Stock Exchange under the ticker symbol COTY and on Euronext Paris’s Professional Segment. JAB Beauty B.V. and its affiliates hold a dominant ownership stake, beneficially owning approximately 54% of the fully diluted shares of Class A Common Stock, inclusive of voting interests associated with former Chairman Peter Harf and HFS Holdings S.à r.l.
The Founders & Their Legacy
Over a century ago, the enterprise began as a pioneering fragrance house. Through strategic evolution, Coty has preserved its founder-inspired commitment to creativity while scaling into a modern multinational enterprise. The company’s strategic vision merges heritage brand building with cutting-edge digital operations, artificial intelligence integration, data-driven analytics, and rigorous environmental, social, and governance (ESG) sustainability commitments under its multi-pillared framework, Beauty That Lasts.
The Journey: History & Evolution
Coty’s corporate history includes transformative expansions, most notably the acquisition of the Procter & Gamble specialty beauty business on October 1, 2016, which reshaped the company’s scale and brand portfolio. In subsequent years, Coty entered into strategic joint ventures, such as its partnership with Kylie Jenner, and executed extensive portfolio reshaping.
In September 2025, Coty announced a strategic review of its consumer beauty business, encompassing its mass color cosmetics business and associated brands, as well as its distinct Brazil business comprised of local Brazilian brands. Leadership evolution followed when Markus Strobel was appointed as Executive Chairman of the Board and Interim Chief Executive Officer, effective January 1, 2026. In March 2026, the Board of Directors further strengthened governance by appointing five new independent directors.
A significant strategic milestone occurred in July 2026, when Coty agreed to transition the Gucci Beauty license back to Kering one year prior to its originally scheduled expiration. Under the terms of the Termination Agreement, Coty will continue to operate the Gucci Beauty brand through at least June 30, 2027, in exchange for gross cash proceeds of approximately $400.0 million ($250.0 million received upon signing and $150.0 million due no later than September 30, 2027, subject to certain conditions). This license transition will alter net revenues and net income contributions starting in fiscal 2028, prompting management to evaluate central organization structures, manufacturing footprints, and cost-reduction plans.
The Corporate Umbrella
Coty organizes and manages its business operations into two operating and reportable segments: Prestige and Consumer Beauty. Executive management, led by the Interim Chief Executive Officer acting as the Chief Operating Decision Maker, evaluates segment performance, allocates resources, and monitors operational results based on these core divisions.
⚙️ The Business Engine: What They Do & Where They Operate
The Core Divisions
| Segment | Fiscal 2026 Net Revenues (in $ millions) | Fiscal 2025 Net Revenues (in $ millions) | Fiscal 2024 Net Revenues (in $ millions) | Latest YoY (%) |
|---|---|---|---|---|
| Prestige | 3,805.8 | 3,820.2 | 3,857.3 | -0.38% |
| Consumer Beauty | 2,000.8 | 2,072.7 | 2,260.7 | -3.47% |
| Total Consolidated | 5,806.6 | 5,892.9 | 6,118.0 | -1.46% |
The Prestige segment concentrates on high-end fragrances, prestige color cosmetics, and prestige skincare. These luxury and premium offerings are distributed primarily through prestige retailers, perfumeries, upscale department stores, e-retailers, direct-to-consumer websites, and duty-free airport shops. Approximately 66% of Coty’s consolidated net revenues in fiscal 2026 were generated by the Prestige segment, with roughly 85% of Prestige revenues derived from its top seven prestige brands.
The Consumer Beauty segment focuses on mass-market color cosmetics, mass-market fragrances, mass body care (including deodorants and shower gels), and mass skincare. These accessible products are distributed through hypermarkets, supermarkets, drug stores, pharmacies, mid-tier department stores, traditional food and drug retailers, and dedicated e-commerce retail platforms.
The Global Product Catalog
Coty’s product portfolio spans four primary product categories:
- Fragrances: Represented 67.3% of total net revenues in fiscal 2026, compared to 67.4% in fiscal 2025 and 63.9% in fiscal 2024. Fragrances remain a structurally advantageous category driven by high brand loyalty, broad global penetration, and expanding price points.
- Color Cosmetics: Accounted for 23.6% of fiscal 2026 net revenues, down slightly from 23.7% in fiscal 2025 and 26.4% in fiscal 2024. The category has experienced competitive pressures in mass retail balanced by double-digit growth in prestige cosmetics.
- Body Care & Other: Represented 5.3% of fiscal 2026 net revenues, matching 5.3% in fiscal 2025 and compared to 6.1% in fiscal 2024, reflecting local Brazilian mass body care brands and global personal care offerings.
- Skincare: Comprised 3.8% of fiscal 2026 net revenues, compared to 3.6% in fiscal 2025 and 3.6% in fiscal 2024, following a shift toward profitable skincare brands and channels.
The Names You Know: Brand Portfolio
Coty’s portfolio combines owned brands with long-term licensed properties:
- Prestige Brands: Burberry, Calvin Klein, Chloé, Davidoff, Escada (Owned), Etro, Gucci, Hugo Boss, Infiniment Coty Paris (Owned), Jil Sander, Joop! (Owned), Kylie Cosmetics by Kylie Jenner, Lancaster (Owned), Marc Jacobs, philosophy (Owned), and Tiffany & Co.
- Consumer Beauty Brands: Adidas, David Beckham, Bozzano (Owned), Bourjois (Owned), Bruno Banani, CoverGirl (Owned), Jovan (Owned), LeGer by Lena Gercke, Max Factor (Owned), Mexx, Monange (Owned), Nautica, Paixao (Owned), Rimmel (Owned), Risque (Owned), Sally Hansen (Owned), and Vera Wang.
Mapping the Global Reach
Coty markets, sells, and distributes products in approximately 122 countries and territories. International markets are vital to the enterprise, with approximately 73% of net revenues in fiscal 2026 generated outside North America. The United States is the only individual country accounting for more than 10% of consolidated net revenues, generating $1,431.3 million in fiscal 2026, $1,453.3 million in fiscal 2025, and $1,617.7 million in fiscal 2024. No single retail customer accounted for more than 10% of global net revenues in fiscal 2026, though certain retailers represent over 10% within specific geographic markets and segments.
The Brick & Mortar Footprint
Coty occupies a network of corporate offices, manufacturing plants, distribution hubs, and research and development centers worldwide. Key properties include leased corporate headquarters in Amsterdam, Netherlands; New York, New York; Paris, France; Singapore; and Barcelona, Spain. Manufacturing facilities include owned or leased sites in Ashford, England; Chartres, France; Granollers, Spain; Hunt Valley, United States; Monaco; Sanford, North Carolina, United States; Senador Canedo, Brazil; and a primary R&D center in Morris Plains, New Jersey, United States.
📊 The Financial Health: The Global Numbers Simplified
Earnings, Expenses, & Take-Home Profits
| Consolidated Statements of Operations (in $ millions) | 2026 | 2025 | 2024 | Latest YoY (%) |
|---|---|---|---|---|
| Net revenues | 5,806.6 | 5,892.9 | 6,118.0 | -1.46% |
| Cost of sales | 2,154.6 | 2,072.0 | 2,178.8 | +3.99% |
| Gross profit | 3,652.0 | 3,820.9 | 3,939.2 | -4.42% |
| Selling, general and administrative expenses | 3,107.9 | 3,103.4 | 3,162.4 | +0.15% |
| Amortization expense | 262.0 | 186.9 | 193.4 | +40.18% |
| Restructuring costs | 0.8 | 76.7 | 36.7 | -98.96% |
| Asset impairment charges | 362.8 | 212.8 | 0.0 | +70.49% |
| Operating (loss) income | -81.5 | 241.1 | 546.7 | N/M |
| Interest expense, net | 155.2 | 214.2 | 252.0 | -27.54% |
| Other expense, net | 373.5 | 371.7 | 90.2 | +0.48% |
| (Loss) income before income taxes | -610.2 | -344.8 | 204.5 | +76.97% |
| (Benefit) provision for income taxes | -20.0 | 5.4 | 95.1 | N/M |
| Net (loss) income | -590.2 | -350.2 | 109.4 | +68.53% |
| Net income attributable to noncontrolling interests | 7.5 | 5.3 | 5.3 | +41.51% |
| Net income attributable to redeemable noncontrolling interests | 7.1 | 12.4 | 14.7 | -42.74% |
| Net (loss) income attributable to Coty Inc. | -604.8 | -367.9 | 89.4 | +64.39% |
| Convertible Series B Preferred Stock dividends | -13.2 | -13.2 | -13.2 | 0.00% |
| Net (loss) income attributable to common stockholders | -618.0 | -381.1 | 76.2 | +62.16% |
Net revenues contracted by 1.5% in fiscal 2026 to $5,806.6 million from $5,892.9 million in fiscal 2025, following a 3.7% decline from $6,118.0 million in fiscal 2024. Gross profit decreased from $3,939.2 million in fiscal 2024 to $3,820.9 million in fiscal 2025 and $3,652.0 million in fiscal 2026, pressured by higher promotional discounting, cost absorption inefficiencies, and tariff-related freight increases. Operating profitability dropped into negative territory in fiscal 2026, recording an operating loss of $81.5 million compared to operating income of $241.1 million in fiscal 2025 and $546.7 million in fiscal 2024. This contraction was heavily influenced by $362.8 million in asset impairment charges recorded during fiscal 2026, which included $237.1 million of goodwill impairment within the Consumer Beauty segment and trademark impairments across CoverGirl, Sally Hansen, Max Factor, and Bourjois.
Assets, Debts, & Corporate Wealth
| Consolidated Balance Sheets (in $ millions) | June 30, 2026 | June 30, 2025 | Latest YoY (%) |
|---|---|---|---|
| Cash and cash equivalents | 176.1 | 257.1 | -31.51% |
| Restricted cash | 12.8 | 13.3 | -3.76% |
| Trade receivables, net | 525.8 | 526.4 | -0.11% |
| Inventories | 838.7 | 794.5 | +5.56% |
| Prepaid expenses and other current assets | 364.3 | 362.0 | +0.64% |
| Total current assets | 1,917.7 | 1,953.3 | -1.82% |
| Property and equipment, net | 650.0 | 709.2 | -8.35% |
| Goodwill | 3,809.7 | 4,062.2 | -6.22% |
| Other intangible assets, net | 2,775.6 | 3,214.8 | -13.66% |
| Equity investments | 0.0 | 1,002.0 | -100.00% |
| Operating lease right-of-use assets | 226.9 | 265.7 | -14.60% |
| Deferred income taxes | 637.9 | 561.6 | +13.59% |
| Other noncurrent assets | 182.6 | 138.9 | +31.46% |
| TOTAL ASSETS | 10,200.4 | 11,907.7 | -14.34% |
| Accounts payable and accrued expenses | 1,875.0 | 1,890.0 | -0.79% |
| Short-term debt and current portion of long-term debt | 14.4 | 3.5 | +311.43% |
| Current operating lease liabilities | 65.2 | 64.4 | +1.24% |
| Income and other taxes payable | 119.8 | 66.8 | +79.34% |
| Other current liabilities | 466.1 | 513.6 | -9.25% |
| Total current liabilities | 2,540.5 | 2,538.3 | +0.09% |
| Long-term operating lease liabilities | 182.9 | 221.8 | -17.54% |
| Long-term debt, net | 3,033.4 | 3,955.5 | -23.31% |
| Pension and other post-employment benefits | 254.3 | 283.8 | -10.39% |
| Deferred income taxes | 384.6 | 467.6 | -17.75% |
| Other noncurrent liabilities | 425.6 | 485.1 | -12.27% |
| TOTAL LIABILITIES | 6,821.3 | 7,952.1 | -14.22% |
| Convertible Series B Preferred Stock | 142.4 | 142.4 | 0.00% |
| Redeemable noncontrolling interests | 74.7 | 94.2 | -20.70% |
| Total Coty Inc. stockholders’ equity | 2,989.7 | 3,542.7 | -15.61% |
| Noncontrolling interests | 172.3 | 176.3 | -2.27% |
| TOTAL EQUITY (including Noncontrolling Interests) | 3,162.0 | 3,719.0 | -14.98% |
Total assets contracted from $11,907.7 million at June 30, 2025 to $10,200.4 million at June 30, 2026, primarily due to the sale of the Wella equity investment and impairment charges on goodwill and intangibles. Total debt decreased substantially from $4,008.4 million ($3,955.5 million net of unamortized financing fees) at June 30, 2025 to $3,088.2 million ($3,033.4 million net of unamortized financing fees) at June 30, 2026. This deleveraging was achieved through debt redemptions funded by the $750.0 million proceeds from the December 2025 Wella stake sale, senior notes refinancing, and revolving credit facility management.
Cash Flow: Tracking the Money Movement
| Consolidated Statements of Cash Flows (in $ millions) | 2026 | 2025 | 2024 | Latest YoY (%) |
|---|---|---|---|---|
| Net cash provided by operating activities | 537.8 | 492.6 | 614.6 | +9.18% |
| Capital expenditures | -189.6 | -215.0 | -245.2 | -11.81% |
| Proceeds from contingent consideration, license agreements, and sale of other long-lived assets, net | 9.3 | 12.6 | 19.0 | -26.19% |
| Proceeds from sale of equity investments and related assets | 750.0 | 74.0 | 0.0 | +913.51% |
| Purchases of short-term investments | -30.7 | 0.0 | 0.0 | N/M |
| Net cash provided by (used in) investing activities | 539.0 | -128.4 | -226.2 | N/M |
| Net proceeds from short-term debt | 12.5 | 0.0 | 0.0 | N/M |
| Proceeds from revolving loan facilities | 2,056.8 | 2,492.5 | 2,458.6 | -17.48% |
| Repayments of revolving loan facilities | -2,096.8 | -2,122.6 | -2,673.7 | -1.22% |
| Proceeds from issuance of other long term debt | 899.2 | 0.0 | 1,824.1 | N/M |
| Repayments of term loans and other long term debt | -1,760.4 | -490.6 | -1,936.5 | +258.83% |
| Net proceeds from issuance of Class A Common Stock | 0.0 | 0.0 | 355.9 | N/M |
| Dividend payments on Common Stock and Convertible Series B Preferred Stock | -13.2 | -13.3 | -13.4 | -0.75% |
| Net proceeds from (payments for) foreign currency contracts | 21.3 | -22.0 | -7.3 | N/M |
| Distributions to redeemable noncontrolling interests and noncontrolling interests | -26.5 | -23.9 | -24.0 | +10.88% |
| Payments related to forward repurchase contracts and settlement, including hedge valuation adjustment | -210.1 | -288.4 | -242.6 | -27.15% |
| Refunds related to hedge valuation adjustment | 0.0 | 61.8 | 0.0 | -100.00% |
| Payments of deferred financing fees and premium on bond extinguishment | -31.6 | -2.0 | -47.1 | +1480.00% |
| All other financing cash flows | -12.4 | -18.3 | -30.7 | -32.24% |
| Net cash used in financing activities | -1,161.2 | -426.8 | -336.7 | +172.07% |
Operating cash generation remained resilient, providing $537.8 million in cash from operations during fiscal 2026, up from $492.6 million in fiscal 2025 and compared to $614.6 million in fiscal 2024. Investing cash flows turned positive at $539.0 million in fiscal 2026, driven by $750.0 million in cash proceeds from the sale of the remaining Wella equity interest, partially offsetting capital expenditures of $189.6 million. Financing activities required $1,161.2 million in net cash outflows during fiscal 2026, reflecting debt service, revolving credit facility repayments, senior notes redemptions, and forward repurchase contract settlements.
Funding the Future: R&D and Capital Expenditures
Research and development expenditures were maintained to support ongoing product innovation and formulation technology, totaling $121.2 million in fiscal 2026, $123.0 million in fiscal 2025, and $126.8 million in fiscal 2024. Capital expenditures totaled $189.6 million in fiscal 2026, down from $215.0 million in fiscal 2025 and $245.2 million in fiscal 2024, reflecting ongoing investments in manufacturing facilities, marketing display furniture, and digital infrastructure.
🗺️ The Corporate Family Tree: Structure & Investments
Subsidiaries, Associates, & Shared Ventures
Coty conducts operations globally through subsidiaries and consolidated majority-owned entities in the United States, Europe, Latin America, the Middle East, and Asia. Significant legal operating subsidiaries include Coty B.V., HFC Prestige Products, Inc., and HFC Prestige International U.S. LLC.
Strategic Investments & Minority Stakes
During fiscal 2026, Coty completed the divestiture of its remaining 25.8% equity interest in Wella Company to an affiliate of KKR for $750.0 million in cash plus Wella Distribution Rights valued at $58.0 million at inception. As of June 30, 2026, Coty holds zero equity ownership in Wella.
👥 Power & Control: Who Pulls the Strings?
The Brain Trust: Board of Directors & Executive Leadership
- Markus Strobel (Executive Chairman of the Board and Interim Chief Executive Officer): Appointed as Executive Chairman and Interim CEO effective January 1, 2026.
- Laurent Mercier (Chief Financial Officer): Manages global financial operations, accounting, and financial reporting.
- Kristin Blazewicz (Chief Legal Officer and Secretary): Oversees global legal, compliance, and corporate governance matters.
- Anna von Bayern (Chief Corporate Affairs and Sustainability Officer): Directs corporate affairs, communications, and sustainability initiatives.
Who Owns the Stock?
JAB Beauty B.V. and its affiliates beneficially own approximately 54% of the fully diluted shares of Class A Common Stock (inclusive of voting interests associated with Peter Harf and HFS Holdings S.à r.l.).
🎯 The Strategic Outlook: Future Plans & Potential Pitfalls
Competitive Advantages & Economic Moats
Coty maintains a leading position in global fragrances, supported by high brand loyalty, scale in prestige perfumery, long-standing brand licenses with average durations of approximately 24 years, and multi-channel distribution networks spanning traditional retail, e-commerce, and travel retail channels.
What Could Go Wrong? Key Challenges & Business Risks
The company faces intense competition across beauty categories from multinational enterprises and agile niche brands. Key risks include exposure to retail industry consolidation, potential tariff increases impacting supply chains and cost of goods sold, foreign currency exchange volatility, and the execution risks associated with restructuring initiatives and the upcoming transition of the Gucci Beauty license.
The Next Chapter: Growth & Expansion Initiatives
Strategic priorities under the Coty.Curated framework focus on bigger and better brand initiatives, enhanced marketing sufficiency, improved supply reliability, greater digital advocacy, and AI-powered operational tools. Management remains committed to deleveraging the balance sheet and exploring opportunities to optimize central organization, manufacturing, and asset footprints.
The Verdict: Strategic Outlook & Conclusion
Coty enters fiscal 2027 navigating a transition period marked by strategic portfolio reviews, upcoming brand transitions, and targeted cost discipline. While near-term top-line headwinds and margin pressures exist, the company’s strong cash generation, debt reduction initiatives, and leadership in prestige fragrances position it for long-term value creation.
Official Site: https://www.coty.com
Note: Financial ratios, margins, year-over-year (YoY) growth rates, and percentage shares of revenue are calculated by FirmsWorld based on figures reported in the company’s official SEC filing.