Coty's weak quarter and Estée Lauder's make-up reset frame a tough beauty market
Coty withheld its annual forecast after a soft quarter, while Estée Lauder's chief executive laid out plans to fix lagging make-up sales and lean further into China.
Coty reported weak quarterly profit and declined to issue annual forecasts, calling the period a transition year, as its Consumer Beauty division, home to brands including Kylie Cosmetics and Rimmel London, continued to underperform. The company's outlook was further complicated by its planned exit from the Gucci fragrance and beauty licence, a business that has been a meaningful contributor to Coty's prestige portfolio for years. The combination of soft mass-market demand and the loss of a major licence leaves Coty needing to prove its remaining portfolio can carry growth on its own.
Separately, Estée Lauder Companies president and chief executive Stéphane de La Faverie set out how the group intends to revitalise its lagging make-up business while continuing to push growth in Asia-Pacific, particularly China, according to Cosmetics Business. Make-up has been a persistent weak point across the beauty sector, with brands citing changed consumer habits, a shift in spending toward skincare and fragrance, and intensified competition from indie and direct-to-consumer labels.
Together, the two stories capture a beauty industry still working through a period of recalibration. Legacy groups are having to justify licensing relationships, brand mix and category bets at a moment when consumer spending on beauty has become more selective, even as it holds up better than apparel or accessories in many markets. China remains the swing factor for both companies: a reacceleration there would ease pressure on margins and restore confidence in medium-term targets, while continued softness would force further restructuring. Investors and rivals alike will be watching Coty's next full results and Estée Lauder's make-up relaunch closely for signs of which way the category turns.
Sources
- Economic Times Luxury — Coty sees weak quarterly profit, withholds annual forecasts in 'transition year'
- Cosmetics Business — Coty Q4 2026 sales impacted by weaker Consumer Beauty demand
- Cosmetics Business — Estée Lauder Companies' CEO on revitalising lagging make-up sales and fuelling growth in China
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