Following a ‘disappointing’ Q2 2026 for beauty conglomerate Coty, the industry leader is looking to turn things around through the introduction of a new strategy – Coty. Curated.
It is a first glimpse into the future of Coty without its former champion, Sue Nabi, after she exited as CEO in December 2025.
Now helmed by interim leader Markus Strobel, he hopes the new strategic framework can help boost the business following its recent financial performance.
For Q2 2026 – the three months ending 31 December 2025 – Coty delivered net revenue of US$1.68bn – a 1% increase on a reported basis and included a 4% benefit from foreign exchange (FX).
Despite this, on a like-for-like (LFL) basis, net revenue declined 3%.
While the Kylie Cosmetics-owner saw strong figures in its prestige market – which accounted for 68% of its total sales – other areas were not as strong, as the company continues to sell off its stakes in brands.
It most recently ended its licensing agreement with luxury French biotech skin care brand Orveda, established by Nabi and executive Nicolas Vu in 2014.
A lot is now riding on the implementation of Coty. Curated, which Strobel hopes will help streamline Coty’s priorities and boost sales across the board – a strategy he said will encompass “sharper priorities, more focused investments, improved execution and increased support behind our core businesses”.
But will this new approach be enough?
The prestige power behind Coty’s Q2 2026 figures
Prestige brands including Kylie Cosmetics accounted for 68% of Coty's total sales
Coty’s prestige arm remains a key driver of its success, not only accounting for 68% of the conglomerate's total sales, but also reporting a 2% increase as net revenue reached $1.13bn during Q2 fiscal year 2026.
However, on the whole, Coty’s Q2 earnings report “disappointed” Bryce Quillin, an economist and co-founder of luxury strategy agency It's A Working Title, told Cosmetics Business.
“Though the 0.5% increase in net revenue was slightly above market expectations, the downgrading of Q3 EBITDA forecasts by $100 to $110m surprised markets as did the withdrawal of forward guidance for the rest of the fiscal year,” said Quillin.
“Markets reacted in a disappointed fashion as Coty’s share price fell almost 9% on the day of the Q2 earnings release, while its year-to-date share price is down over 16%.
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