Key Takeaways:Prestige fragrances remain Coty’s growth engine, with BOSS Bottled Beyond outperforming globally.Coty is expanding into ultra-premium collections and mists, while reviewing underperforming color cosmetics and its Brazilian operations.Executives reaffirmed a return to sales and profit growth in 2H FY26.Coty Inc. reported first-quarter fiscal 2026 results that were largely in line with expectations, underscored by the company's renewed focus on fragrances. Net revenue declined 6% to $1.57 billion for the three months ended September 30, 2025, as the fragrance powerhouse continued to recalibrate its portfolio.Shares decreased slightly following the report, with investors weighing the solid momentum in fragrance against headwinds in consumer beauty, color cosmetics, and the impending loss of the Gucci license.“Coty’s strategic progress is accelerating as we elevate Coty as a prestige beauty company with an emphasis on fragrances and scenting across price points,” said Coty CEO Sue Nabi in a press release. “By integrating Prestige Beauty and Mass Fragrances, unlocking material opportunities in ultra-premium fragrances, mists, and broader scenting, and implementing a performance improvement plan for our Consumer Beauty brands while pursuing our strategic review of Consumer Beauty Cosmetics and Brazil, we will ensure that Coty realizes the full value of its scale as a fragrance and scenting powerhouse.”In Q1 2026, Coty’s US prestige fragrance sell-out grew mid-to-high single digits, now in line with the broader market, a key reversal from its Q4 FY25 underperformance.