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Coty Announces Fourth Quarter Fiscal Year 2026 Results

COTYPARIS:COTY
  • Coty Inc. reported Q4 FY26 net revenues of $1,269.2 million, a 1% increase year-over-year on a reported basis, with a 1% decline on a like-for-like (LFL) basis.
  • Full-year FY26 net revenues totaled $5,806.6 million, representing a 2% decrease on a reported basis and a 5% decrease on an LFL basis.
  • Operating cash flow for FY26 reached $538 million, while free cash flow grew to $348 million despite lower profitability.
  • Reported net loss for Q4 was $144.3 million, compared to a reported net loss of $72.1 million in the prior year quarter.
  • Adjusted net loss for Q4 improved to $13.4 million from $44.9 million in the prior year, while full-year adjusted net income was $185.1 million, a slight 2% decrease year-over-year.
  • The company monetized its remaining Wella stake in December 2025 for $750 million to support debt reduction.
  • Coty agreed to sell the Gucci Beauty license back to Kering in July 2026 for $400 million plus inventory proceeds, ending the license approximately one year early.
  • The Gucci Beauty exit is projected to reduce sales and profit in FY28, though the company plans to mitigate this impact through cost reductions and accelerating core brand growth.
  • Coty.Curated strategic framework execution included rightsizing commercial, R&D, and marketing functions to enhance agility.
  • Prestige division reported Q4 revenues of $771.8 million (1% growth reported), while Consumer Beauty division reported $497.4 million (1% growth reported).
  • Consumer Beauty LFL sales declined 3% in Q4, primarily due to lower mass color cosmetics, though U.S. sell-out trends for CoverGirl and Sally Hansen showed improvement.
  • Total debt decreased to $3,088.2 million as of June 30, 2026, down from $3,216.2 million in March 2026.
  • Financial leverage ratio (net debt to adjusted EBITDA) stood at 3.4x as of June 30, 2026.
  • FY27 is expected to be a transition year with Q1 LFL revenue projected to decline by a low-to-mid-single-digit percentage.
  • Coty anticipates FY27 adjusted EBITDA to improve sequentially throughout the year, supported by productivity initiatives and cost discipline.
  • The company expects free cash flow for the first half of FY27 to exceed $300 million.