Coty Slashes Marketing Budgets and Defers Capex to Boost Cash Flow
COTY•Coty joined Estée Lauder in cutting marketing budgets and postponing capital expenditures to prioritize cash generation during a slowdown in North American growth. Management expects the cost measures to boost free cash flow margins in fiscal 2026.
1. Coty Prioritizes Cash Over Growth
Coty announced a strategic shift to prioritize cash generation by cutting marketing spending, postponing non-core product launches and deferring capital expenditures. This move aims to shore up its balance sheet amid slowing sales momentum in North America and Europe, with management targeting improved free cash flow margins in fiscal 2026. The company expects the leaner cost structure to provide greater financial flexibility for debt reduction and investment in core premium brands.
