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Coty E-Commerce Grows Mid-Single Digits: Is Digital the Backbone?

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Key Takeaways

  • Coty posted mid-single-digit e-commerce sell-out growth in fiscal Q1 across Prestige and Consumer Beauty.
  • COTY increased e-commerce penetration to about 20% of total sales during the quarter.
  • Coty embedded digital teams locally and expanded AI use to improve execution and the shopping experience.

Coty Inc.’s ((COTY - Free Report) ) first-quarter fiscal 2026 performance highlights the growing strategic relevance of e-commerce, even as it navigates broader top-line pressure from trade destocking. In the fiscal first quarter, Coty reported mid-single-digit e-commerce sell-out growth across both Prestige and Consumer Beauty, underscoring resilient consumer demand online.

E-commerce now accounts for approximately 20% of Coty’s total sales, with penetration increasing during the quarter. This growth reflects more than channel mix benefits, it signals improved execution. Coty has embedded its digital and e-commerce teams directly within local markets and brand organizations, enabling faster decision-making and tighter omnichannel coordination. This structural shift allows brands to respond more dynamically to local demand patterns, promotions and product launches.

Partnerships remain a critical lever. Coty continues to build on its long-standing collaboration with Amazon, adding Marc Jacobs to Amazon’s Premium Beauty Marketplace during the quarter. This move expands Coty’s reach in prestige beauty online while maintaining brand positioning and control in a curated digital environment.

Importantly, e-commerce momentum is also supported by early-stage digital innovation. Coty is accelerating AI adoption across content creation, predictive analytics and virtual try-on tools, aiming to enhance the online shopper experience while improving return on digital media spend. While still in ramp-up mode, these initiatives point to e-commerce becoming not just a growth channel, but a testing ground for scalable, data-driven execution.

Overall, Coty’s mid-single-digit e-commerce growth in the fiscal first quarter highlights the channel’s growing role in consumer engagement, even as it manages near-term retail disruptions in a changing beauty market.

Coty’s Zacks Rank & Share Price Performance

Shares of this Zacks Rank #3 (Hold) company have lost 8.4% in the past month against the broader Consumer Staples sector’s 0.1% growth. COTY has also underperformed the industry and the S&P 500 index’s growth of 10.6% and 1.7%, respectively, during the same period.

COTY Stock's Past Month Performance

Zacks Investment Research
Image Source: Zacks Investment Research

Is COTY a Value Play Stock?

Coty currently trades at a forward 12-month P/E ratio of 6.74, below the industry and the sector’s average of 28.98 and 16.39, respectively.

COTY P/E Ratio (Forward 12 Months)

Zacks Investment Research
Image Source: Zacks Investment Research

Stocks to Consider

The Estee Lauder Companies Inc. ((EL - Free Report) ) manufactures, markets and sells skin care, makeup, fragrance and hair care products worldwide. It currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Estee Lauder’s current fiscal-year sales and earnings calls for growth of 4.5% and 42.4%, respectively, from the year-ago reported numbers. EL delivered a trailing four-quarter average earnings surprise of 82.6%.

Five Below, Inc. ((FIVE - Free Report) ) operates as a specialty value retailer in the United States and currently flaunts a Zacks Rank #1. FIVE delivered a trailing four-quarter earnings surprise of 62.1%, on average.

The Zacks Consensus Estimate for Five Below’s current fiscal-year sales and earnings calls for growth of 19.6% and 15.9%, respectively, from the year-ago reported numbers.

Ulta Beauty, Inc. ((ULTA - Free Report) ) operates as a specialty beauty retailer in the United States. It currently holds a Zacks Rank #2 (Buy). ULTA delivered a trailing four-quarter earnings surprise of 15.7%, on average.

The Zacks Consensus Estimate for Ulta Beauty’s current fiscal-year sales and earnings calls for growth of 8.7% and 0.7%, respectively, from the year-ago reported numbers.

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