Is COTY (Coty Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, COTY is classified as Doubtful. It passed 3 of 4 compliance screens. Some scholars may permit investing with income purification, while others advise avoiding it. We recommend consulting a qualified Islamic scholar before investing in COTY.

Coty Inc. is a global leader in the beauty industry, manufacturing and distributing prestige fragrances, cosmetics, and skincare products. The company manages a massive portfolio of high-profile brands, including Gucci, Calvin Klein, Burberry, and Kylie Jenner, selling through department stores, e-retailers, and duty-free shops. For Muslim investors using HalalStocks.co.uk, Coty currently holds a Doubtful status based on AAOIFI standards. While its core business of selling personal care products is entirely permissible and its interest income is a negligible 0.28%, the company fails critical financial screening criteria. The primary concern for halal investors is Coty's massive debt burden, with a debt-to-market cap ratio reaching 199.8%, which drastically exceeds the 33% Islamic threshold. This heavy reliance on interest-bearing debt makes the stock non-compliant for conservative Islamic portfolios, despite its cash reserves sitting comfortably at 12.1%. Halal investors should monitor Coty's balance sheet for significant debt reduction efforts. Until the company drastically lowers its leverage to align with AAOIFI debt limits, it remains unsuitable for strict shariah-compliant investment strategies. Coty Inc. operates in the Consumer Defensive sector under the Household & Personal Products industry and is headquartered in New York City, NY, US. The company is led by CEO Markus Strobel and employs approximately 11,791 people.

COTY was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. COTY passed 3 of these 4 screens.

COTY was last screened on 2026-04-27. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.