Slide 1: 3Q FY26 Earnings Script
3Q FY26 Earnings Script Olga Slide 1 • Hello everyone, this is Olga Levinzon, Coty’s Senior Vice President of Investor Relations • Thank you for joining us today for the prepared remarks portion of Coty’s third quarter fiscal 2026 earnings • On Wednesday, May 6th, 2026, at approximately 8:00 AM East
Slide 2: Forward-looking statements
• Hello everyone, thank you for joining us today • Before I discuss our results for the quarter, I want to take a moment to thank our colleagues around the world, many of whom I’ve had the pleasure of meeting in recent months, for their continued dedication and hard work on behalf of Coty • I also w
Slide 3: Sales and sell-out trends
• The reason the Middle East impact is more pronounced for Coty is primarily portfolio and channel mix • The region represents a mid‑single‑digit percentage of our total sales, including local Travel Retail, and given fragrances are a dominant category in the Middle East, we are seeing a more sizeab
Slide 4: Q3 results
• Prestige sell-out was slightly positive in Q3, indicating continued consumer interest in our brands even as reported sales were pressured • On the revenue side, Prestige like-for-like sales declined 5% in the quarter • This includes an estimated 2‑point headwind from the Middle East • Excluding th
Slide 5: Broader beauty market
o In the U.S., CoverGirl and Sally Hansen are outperforming the category on a unit basis and narrowing the gap on a value basis o Our European brands remain under pressure • At the same time, lifestyle fragrance was a larger drag in both Q3 and year-to-date, reflecting a portfolio where, historicall
Slide 6: Prestige performance
• On a year-to-date basis, adjusted gross margin was 63.6%, down 200 basis points • Importantly, this performance was in line with our expectations, given the operating environment and the mix dynamics we discussed last quarter • The primary drivers of the year-on-year gross margin decline in the qu
Slide 7: Consumer Beauty performance
• Relative to our guidance, our adjusted EBITDA upside came from better execution on fixed cost reduction, and the decision to re-allocate some A&CP towards key Q4 consumption events • We are making progress against our transformation program announced in April 2025, including in headcount reduction
Slide 8: Adjusted gross margin
• Taken together, these factors explain the Consumer Beauty EBITDA performance you see on this slide • As you may have seen in our press release, Consumer Beauty reported results included a $363 million impairment charge • Following the significant decline in the Coty’s share price over the last thr
Slide 9: Leverage and balance sheet
• As a result, we exited the third quarter with leverage of approximately 3.4 times, and we remain firmly committed to continuing to reduce leverage toward 2x over time, with the objective of achieving and sustaining an investment-grade credit profile • In parallel, we continue to take a disciplined
Slide 10: Fourth quarter outlook
elevated, though sequentially lower excess and obsolescence, partially mitigated by productivity initiatives and procurement actions • We anticipate FY26 adjusted EBITDA of approximately $838 to $848 million, with an adjusted EPS, excluding the equity swap, of 33 to 35 cents • Q3 profit came in ahea
Slide 11: Additional fixed cost savings
• And finally, we are identifying additional fixed cost savings opportunities, with the objective of improving the underlying cost structure while maintaining a balanced approach to growth and profitability • Stepping back, this is not about providing concrete guidance, it is about being transparent
Slide 12: Coty.Curated
• Second, advocacy. One of the clear lessons for me is that too much of our spending has gone into asset creation, and not enough into the consumer-facing support • In FY27, we will be stepping up consumer engagement spending, with a sharper focus on advocacy, influencers, and working media • This w
Slide 13: U.S. prestige market
• The U.S. is our largest individual market, accounting for roughly a quarter of our sales, and our underperformance in this market drove the vast majority of the sales pressure in FY25 • Entering FY26, the Coty organization made deliberate interventions and choices in the U.S. prestige market • Thi
Slide 14: Advocacy and retailer plans
advocacy, tailored retailer plans and further momentum in Prestige makeup with Kylie Cosmetics and Marc Jacobs Slide 21 • Let me now turn to Burberry, which is one of the clearest examples of what a focused, disciplined prestige playbook can deliver • Over the past several years, we have built Burbe
Slide 15: BOSS Bottled Beyond
• BOSS Bottled Beyond remains a top-ranked launch, driving share gains fiscal year-to-date for the BOSS Bottled pillar across all key markets and reinforcing Hugo Boss's leadership position in Europe, while also establishing a meaningful presence in North America, where the brand has historically ha
Slide 16: Kylie Cosmetics and Marc Jacobs
• In makeup, we saw very strong performance with like‑for‑like sales increasing over 50% in Q3, reflecting strong consumer engagement with the brand’s lip products and the continued viral success of the Skin Tint Blurring Elixir • In fragrances, Kylie is gaining share across both Europe and North Am
Slide 17: Les Essences Méditerranéennes
• We are building on this momentum with the recent launch of Les Essences Méditerranéennes • Early response to the launch in China has been encouraging, including a number 6 ranking at Sephora China in March and strong social engagement • We believe this dual-region, dual-price-tier approach gives u
Slide 18: Color the Future program
• As a reminder, Consumer Beauty Cosmetics accounts for around 20% of our sales, and over the last eight months Gordon and his team have been developing and implementing the Color the Future program, which applies the principles of our Coty.Curated strategic framework to the cosmetics business • The
Slide 19: Operational changes in the U.S.
Slide 29 • The operational changes we began to implement are starting to support better trends • As mentioned, the U.S. has been our lead market in implementing our Color the Future playbook, and this where we have seen the most positive reversal in trends • As we’ve returned to a steadier support m
Slide 20: Mass fragrances
Slide 32 • I also want to touch on mass fragrances, where our year-to-date performance reflects the consequences of too much complexity • Overall, mass fragrance sales have declined year-to-date • The multiple under scale and fragmented mass fragrance initiatives that Coty launched in recent years d
Slide 21: Gradual improvement ahead
• So while we do expect gradual improvement in sales trends into Q4 and beyond, this will not be linear and it will not happen overnight • At the same time, the opportunity in this business is significant, as few in the industry can rival the power of our brands, our top notch know-how in fragrances