Coty reported a widening net loss of $126.9 million in its fiscal 2026 second quarter, as revenue fell 3% to $1.679 billion. Interim CEO Markus Strobel launched a strategic overhaul called “Coty Lean” to address persistent challenges in its consumer beauty division. The consumer beauty business, including CoverGirl and Rimmel, declined 6% on a like-for-like basis, prompting a strategic review that may result in its sale. Only Asia-Pacific showed positive signs, particularly China where fragrance sales outperformed. Coty reduced net debt leverage to 2.7x, the lowest in a decade, following the sale of its Wella stake. The company withdrew full-year guidance, forecasting only a mid-single-digit revenue decline for Q3.

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