Market Growth Environment
Global beauty market grew ~5% in Q3 (both Prestige and mass channels), demonstrating consumer resilience and continued demand across price tiers.
Consumer Brand Recovery — CoverGirl & Sally Hansen
CoverGirl and Sally Hansen in the U.S. are now growing in unit volume versus the market and are closing the gap in value; certain reduced-bundle innovations have performed up to ~3x above objectives.
Coty.Curated SKU & Innovation Strategy Showing Early Positive Results
Shift to fewer, bigger, more relevant innovations and sharper sell-in bundles (Coty.Curated) is driving better retail productivity and early outperformance on select SKUs; management expects 1–3 iterations to realize full benefits.
A&CP Discipline and Reallocation to High-ROI Channels
Q3 advertising & consumer promotion (A&CP) spend was flat in absolute terms (though higher as a percentage), with conscious reallocations toward working media and advocacy (influencers) and targeted support for key periods (e.g., Mother's/Father's Day).
Working Capital & Cash Benefits from Rationalization
SKU rationalization, focus on forecasting and joint business planning with retailers is expected to reduce inventory, excess & obsolescence (E&O) and returns, improving working capital and cash generation over time.
Operational Discipline and Management Confidence
Management emphasized improved execution in Q3, ability to protect profitability and cash flow while taking steps to strengthen execution; reiterated commitment to improving EBITDA trajectory in FY27 with Coty.Curated as the framework.