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

Core Insights - Coty Inc.'s first-quarter fiscal 2026 performance emphasizes the increasing importance of e-commerce amidst broader top-line pressures from trade destocking, with mid-single-digit e-commerce sell-out growth reported across both Prestige and Consumer Beauty segments [1][5] E-commerce Growth - E-commerce now constitutes approximately 20% of Coty's total sales, with penetration increasing during the quarter, indicating improved execution beyond just channel mix benefits [2][8] - The company has integrated its digital and e-commerce teams within local markets and brand organizations, facilitating quicker decision-making and better omnichannel coordination [2] Strategic Partnerships - Coty continues to enhance its long-standing partnership with Amazon, adding Marc Jacobs to Amazon's Premium Beauty Marketplace, which broadens Coty's online reach in the prestige beauty sector while maintaining brand control [3] Digital Innovation - E-commerce momentum is bolstered by early-stage digital innovations, with Coty accelerating AI adoption in areas such as content creation, predictive analytics, and virtual try-on tools to improve the online shopping experience and optimize digital media spending [4] Market Performance - Coty's mid-single-digit e-commerce growth highlights the channel's increasing role in consumer engagement, even as the company faces near-term retail disruptions in the evolving beauty market [5]