Net revenue from Europe, the Middle East and Africa (EMEA) increased 2 per cent on a reported and like-for-like basis to $839.8 million. Nabi said the group will be doubling down on efforts in South Africa, Mexico, Saudi Arabia and South East Asia to fuel growth.
Sales across Coty’s prestige category (a portfolio of brands including Burberry Perfume, Hugo Boss and Marc Jacobs Beauty) slipped 1 per cent to $1.1 billion (making up 67 per cent of Coty’s sales) on a reported and like-for-like basis in the second quarter, driven by the downturn in Asia-Pacific and headwinds from selling the Lacoste fragrance licence.
Consumer beauty (made up of brands like Covergirl, Max Factor and Rimmel) was down 4 per cent on a like-for-like to $553.8 million, due to a slump in demand for colour cosmetics, which was only partially offset by growth in the mass fragrance and skincare categories, the company said. The plan is to invest more into innovation across colour cosmetics to spur excitement among consumers, while deterring cheaper dupes, said Nabi.
Fragrance was a bright spot. “Fragrances of all price points continue to outperform most other beauty categories, which strongly benefits Coty’s business as fragrance accounts for over 60 per cent of our revenues and an even bigger portion of our profits,” the CEO added. During the call, she referenced double-digit year-on-year growth of 20 to 30 per cent from Burberry, driven by the Burberry Goddess scent, as well as a strong performance from Hugo Boss fragrances and Marc Jacobs’s Daisy. Coty’s mass fragrance brands (like Adidas) grew by mid-single digits in the second quarter, supported by the launch of the Adidas Vibes fragrance collection in September last year.
Looking ahead, Nabi teased big innovation launches and upcoming brand licences from Swarovski, Marni, Etro and Marc Jacobs. “While we are prudently assuming these patterns will continue into the second half as well, the strong sell-out growth of our fragrances brands gives us confidence that these headwinds are temporary and we should return to stronger sales growth as we enter fiscal 2026,” Nabi concluded.
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