Coty Sales Fall 1% as It Gears Up for “Transition Year”

Coty said on Thursday that like-for-like revenues were down 1% to $1.3 billion in the fourth quarter of fiscal 2026, falling 5% to $5.8 billion for the full year. Shares dipped 7% in after-hours trading due to the company withholding its 2027 outlook.

“We closed 2026 on a stronger note, delivering sales and profit ahead of our targets, and growing free cash flow even in the face of business headwinds, all while establishing a clear strategic framework and taking decisive action to strengthen our core business in 2027 and beyond,” Markus Strobel, executive chair and interim CEO, said in a statement. The executive said that the Coty.Curated strategic framework has now entered execution, with the rightsizing of Coty’s commercial organization, consumer beauty R&D, and global brand marketing functions underway.

Strobel said that the company is encouraged to see closer alignment between its sell-in and sell-out numbers. That said, he noted that Coty remains uncontent with its sell-out performance, which remains below market levels in both prestige and consumer beauty divisions, and that closing the gap is a priority across the organization.

In the fourth quarter, prestige beauty revenues declined 0.5% to $771.8 million, while consumer beauty revenues declined 3% to $497.4 million. For the full year, prestige beauty was down 4% to 3.8 billion, while consumer beauty fell 7% to $2 billion. Coty noted that major prestige beauty launches throughout the year performed well, including Boss Bottled Beyond, Cosmic by Kylie Jenner Intense, and Calvin Klein Euphoria Elixirs, and that the online launch of makeup under Marc Jacobs Beauty is off to a strong start, with online sell-out at Sephora beating targets. In consumer, Coty noted early progress such as sell-out improvement in the US for CoverGirl and Sally Hansen.