Coty announced on Tuesday that revenues declined 7% to $1.28 billion in the third quarter of fiscal 2026, ended March 31, 2026. This marked a further decrease compared to Q2, during which revenues fell 3%.

Despite the tough results, executives remain optimistic for a turnaround at the French company. “Q3 marked an important step toward restoring consistent performance commensurate with Coty’s outstanding assets and capabilities,” Markus Strobel, executive chair and interim chief executive officer, told investors. “While the Q3 results were below our potential on an absolute basis, we were pleased to deliver profitability ahead of our guidance, despite the disruption in our Middle East business later in the quarter. This was a welcome first step, as we begin to gradually strengthen our operational control and execution.” (Coty expects the Middle East conflict to impact Q4 results by an estimated -2% to -3%.)

Adjusted EBITDA declined 38% year-on-year in Q3, with gross margin decreasing 61.8%. Americas sales declined 6% on a like-for-like basis, while Coty’s EMEA (Europe, the Middle East, and Africa) sales declined 11% and Asia-Pacific sales fell 5%.

Coty said that its prestige-focused strategy continues to be anchored by key brands such as Burberry, Hugo Boss, Calvin Klein, Marc Jacobs, Chloé, and Kylie Cosmetics, which the company is putting its hopes on to drive sales forward. However, revenues for the sector decreased 5% like-for-like to $830.9 million.

Coty’s consumer beauty division, which includes CoverGirl and Sally Hansen, also witnessed losses, as sales fell 10% in Q3 to $450.7 million.

The company noted the relaunch of its Calvin Klein Euphoria Elixirs earlier this year, which were met with positive feedback in Europe and across travel retail in the Americas. Looking ahead, Coty wants to continue the success of its Boss Bottled franchise. In June, Marc Jacobs Beauty will make its debut in the makeup category, while other major launches penned for 2027 remain under wraps.

Coty believes that its discipline and sustained focus on reviving all categories and brands will eventually get the business back on track. “We believe stronger, more focused execution across our portfolio will enable us to deliver consistent, profitable growth, advance our deleveraging agenda, and further strengthen our balance sheet,” said Strobel.