Cotyhas reported full-year net revenues of US$5.8 billion for the 12 months ended 30 June 2026, down -2% year-on-year on a reported basis and -5% like-for-like.
Fourth-quarter revenues rose +1% reported to US$1.27 billion, declining -1% like-for-like. The fourth quarter included an estimated -1% headwind related to the conflict in the Middle East.
The Burberry to Hugo Boss, Marc Jacobs to Calvin Klein beauty house highlighted higher sales in Americas and Asia Pacific travel retail during the fourth quarter, which helped offset declines elsewhere.
The group plans to expand Marc Jacobs Beauty makeup from online distribution into Sephora US and travel retail from September. Further launches are planned across Coty’s core brands, with Etro fragrances set to debut in the second half of FY2027 and Swarovski fragrances scheduled for calendar 2027.
Coty posted a reported operating loss of US$81.5 million for the year, compared with operating income of US$241.1 million in FY2025. Adjusted operating income fell -27% to US$626.7 million.
The company reported a net loss of US$618 million versus a US$381.1 million loss a year earlier. Adjusted net income was broadly stable at US$185.1 million compared with US$188.8 million in FY2025.
Full-year adjusted EBITDA declined -22% to US$846.9 million, primarily reflecting lower sales and gross profit. Adjusted EBITDA margin fell 380 basis points to 14.6%.
Coty Executive Chairman and Interim Chief Executive Officer Markus Strobel commented, “We closed FY26 on a stronger note, delivering sales and profit ahead of our targets, growing free cash flow even in the face of business headwinds, all while establishing a clear strategic framework and taking decisive action to steadily strengthen our core business in FY27 and beyond.
“We were pleased to return to reported sales growth, with Q4 sales up +1% year-over-year and a significant sequential improvement in our like-for-like trends to -1%, despite incurring an estimated -1% headwind to sales from the Middle East conflict. It’s encouraging to see closer alignment between our sell-in and sell-out.
“However, we are not content with our sell-out performance, which remains below market levels in both divisions, and steadily closing that gap remains a clear priority across the organisation.
“Our Coty.Curated strategic framework has entered the execution phase, with tangible actions already taken and further progress ahead. We began rightsizing our commercial organisation and Consumer Beauty R&D and global brand marketing functions to enhance agility and accountability. We have also incorporated concrete market share targets into our global incentive programme.
“Our FY27 big bets have been identified, and we will support them with amplified advocacy and consumer engagement programmes, while also optimising the visibility and recommendation of our brands across AI platforms.
“In Consumer Beauty colour cosmetics, we are simplifying the innovation calendar and SKU base, and shifting resources toward fewer, higher-impact launches and proven hero products. We will execute these actions with discipline to minimise the impact on sales.”
Strobel continued: “Over the last three quarters, we have advanced our strategic objectives of simplifying our portfolio, sharpening our focus on the core of our business, and reducing our debt balance. In December 2025, we monetised our remaining stake in Wella for US$750 million. In July 2026, we announced an agreement to sell the Gucci Beauty licence back to Kering [followed almost immediately by L’Oréal Group revealing it will assume responsibility for the Gucci Beauty business from Coty under a new 50-year exclusive global licence agreement with Kering, effective 1 July 2027].
“The agreement will take approximately one year ahead of its expiration for US$400 million, plus additional proceeds from inventory.
“These favourable outcomes are fully consistent with our objectives, as we deploy the proceeds toward debt reduction, reinvestment in Coty’s core prestige fragrance and beauty brands, and optimisation of our organisational structure.”
Performance by category
Prestige, 66% of Coty’s total business, generated full-year revenues of US$3.81 billion. Sales were slightly down on a reported basis and declined -4% like-for-like.
Coty outlined a wide-ranging FY2027 innovation programme across its Prestige portfolio. Key initiatives include BOSS Bottled Beyond for Her, alongside further investment in Burberry Goddess following the launch of Goddess Amber Vanilla.
The group also plans to expand Marc Jacobs Beauty makeup from online distribution into Sephora US and travel retail from September. Kylie Cosmetics will build on its multi-category strategy, while Calvin Klein will support Euphoria Elixirs and tap into renewed interest in 1990s nostalgia around CK One.
Further launches are planned across Coty’s core brands, with Etro fragrances set to debut in the second half of FY2027 and Swarovski fragrances scheduled for calendar 2027.
Consumer Beauty generated FY2026 revenues of US$2 billion, representing 34% of group sales. Revenues fell -3% reported and -7% like-for-like.
The company is also introducing its Future of Scenting strategy, designed to sharpen its focus across mass-market fragrances.
Regional performance
In the Americas, full-year net revenues reached US$2.34 billion year-on-year (-3% like-for-like) and Q4 revenues increased US$43.5 million year-on-year (+6% like-for-like) driven by growth in the USA, Brazil and regional travel retail, partly offset by lower sales in Canada.
Full-year Asia Pacific revenues reached US$721.9 million. This result was supported by higher sales in China, Southeast Asia, Australia and New Zealand and in travel retail in the fourth quarter, helping to drive US$185.6 million in regional revenues (+7% like-for-like) for the period.
EMEA revenues decreased US$45.3 million in Q4 primarily reflecting lower sales in the Middle East, Germany and Central & Eastern Europe. The region recorded full-year net revenues of US$2.74 billion (-8% like-for-like).
Gucci Beauty transition and Coty.Curated strategy
As reported, Coty has agreed with Kering on the early transition of the Gucci Beauty licence, approximately one year ahead of the original licence term.
Coty received US$250 million in cash on signing and is set to receive a further US$150 million no later than 30 September 2027, of which up to US$30 million is contingent on certain criteria. Coty will continue to operate Gucci Beauty until at least 30 June 2027.
The beauty group is continuing to implement its Coty.Curated strategic framework, which centres on sharpening its focus on core brands and markets, reducing portfolio complexity and simplifying its organisation.
Commenting on the Gucci deal, Strobel said: “While the Gucci Beauty licence exit will result in a step-down in sales and profit in FY28, we are developing plans to help moderate the impact.
“These include accelerating our core brands; maximising the contribution from new portfolio additions, including makeup under Marc Jacobs Beauty and fragrances under Swarovski, Etro and Marni; and lowering our cost structure through a significant fixed cost-reduction programme.
“These actions are designed to mitigate the FY28 impact and position Coty to accelerate growth across our core portfolio and drive profit expansion in FY29 and beyond.”
Outlook
Coty expects first-quarter FY2027 like-for-like revenues to decline by a low- to mid-single-digit percentage. Sell-out trends across prestige and consumer beauty are expected to remain broadly consistent with those recorded during the second half of FY2026.
Strobel added: “In sum, our Q4 results provide early signs of stabilisation, although the recovery will not be linear. FY27 will be a transition year as we strengthen our core business and continue shaping a simpler, more focused Coty, factoring in both the Gucci exit by FY28 and final portfolio decisions related to our strategic review of Consumer Beauty by the end of FY26.
“We have important strengths to build on, including leading brands, strong category positions, solid cash generation, and a differentiated end-to-end global platform. We are confident that our focused Coty.Curated framework will unlock Coty’s significant potential and steadily translate into shareholder value in the years ahead.” ✈
