Company Reports Q1 Revenue of $345M, Below Expectations
Reports Q1 revenue $345M, consensus $352.62M. Jean Madar, CEO, stated, "Our United States and European based operations each delivered year-over-year growth despite mixed results across the portfolio, reflecting the strength of our business model, the appeal of our brands, and the disciplined execution of our strategy. We are navigating a dynamic global marketplace by proactively driving efficiencies across the company in response to weakness in select regions, tariffs, and the effects of a normalizing market following years of significant global growth. We are encouraged by the resiliency of the fragrance market and its strong underlying fundamentals. We generated higher sales across several key geographies, including our largest market North America where sales rose by 7% reflecting continued market growth and the launch of several extensions, in particular for Coach. Sales in Central and South America increased by 23%, driven by the success of women's and men's Coach franchises and the strength of the Montblanc Legend line. Sales in Western Europe were flat behind slow consumer demand. Partially offsetting performance in these regions were sales declines in Eastern Europe, driven by operational difficulties in certain markets that disproportionately impacted Lanvin and Lacoste. Sales declines in the Middle East and Africa were due to the recent intensification of regional wars and conflicts, while lower Asia / Pacific sales were driven by distribution changes we implemented in 2025 in South Korea and India, along with softer consumer demand in Australia / New Zealand, partially offset by strong growth in China."
