Q2 2026 Coty Inc Earnings Call Transcript
Key Points
- Coty Inc (COTY) is focusing on its most iconic brands like CoverGirl and Rimmel, which have shown early signs of improvement.
- The company is streamlining its innovation bundles to avoid overcrowding shelves and improve sellout velocity.
- Coty Inc (COTY) is reallocating resources to digital marketing and AI, aiming for significant cost reductions in asset creation.
- The company is investing in new channels like Amazon and TikTok, which have shown promising results and halo effects on other sales channels.
- Coty Inc (COTY) is planning to launch significant initiatives in its Prestige segment, including a big Calvin Klein female initiative and a Marc Jacobs beauty launch.
- Coty Inc (COTY) has been underperforming the market in the last 18 months, with a need to regain market share and sellout growth.
- The consumer beauty segment is facing challenges, with a need for significant operational discipline and a focus on sellout rather than just selling.
- The company is experiencing gross margin pressure due to high promotional activity, tariffs, and unfavorable foreign exchange rates.
- Coty Inc (COTY) is dealing with fixed cost under absorption due to lower volumes, particularly in its cosmetic brands.
- The company acknowledges that its recent financial performance has not met expectations, and improvements will take time.
Good morning and good afternoon everyone. My name is Chloe and I will be your conference operator today.
At this time, I would like to welcome everyone to Coty's second quarter fiscal 2026 question-and-answer conference call. As a reminder, this conference call is being recorded today February 6, 2026, at 8:00 AM Eastern time or 2:00 PM Central European Time.
Please note that on February 5, 2026, at approximately 4:30 PM Eastern time or 10:30 PM Central European Time, Coty issued a press release and prepared remarks webcast which can be found on its Investor Relations website.
On today's call are Markus Strobel, Executive Chairman of the Board and Interim Chief Executive Officer and Laurent Mercier, Chief Financial Officer.
I would like to remind you that many of the comments today may contain forward-looking statements. Please refer to Coty's earnings release and the reports filed with the SEC where the company lists factors that could cause actual results to differ materially from these forward-looking statements. In addition except where noted the discussion of
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