Coty Inc. announced on Wednesday that its fourth‑quarter net revenue rose 1.3% to $1.27 billion, surpassing analysts’ expectations of a decline. The company credited resilient consumer demand for fragrances and cosmetics, noting that shoppers remain selective but continue to purchase beauty products.
Strategic overhaul and brand review
The cosmetics giant said fiscal 2027 will be a “transition year” as it advances its “Coty Curated” strategy, aimed at simplifying the business and focusing on core brands. As part of this effort, Coty is conducting a review of its consumer beauty division, with a target completion by the end of the year. The review could result in the sale of legacy brands such as CoverGirl and Rimmel.
Cost‑reduction and licensing changes
Alongside the brand review, Coty is implementing a cost‑reduction program intended to offset a projected sales dip in fiscal 2028. That dip is expected after the early return of the Gucci Beauty license to parent company Kering. The company believes the combined initiatives will support profit growth beginning in fiscal 2029.
Financial performance details
Adjusted loss per share narrowed to two cents, an improvement from a five‑cent loss a year earlier, though the result was wider than the one‑cent loss analysts had forecast. Coty also noted a roughly 1% impact from the Middle East conflict on its quarter, less severe than the 2%‑3% hit it had anticipated in May.
Looking ahead, Coty expects like‑for‑like revenue in the current quarter to decline by a low‑ to mid‑single‑digit percentage, compared with an 8% drop in the same period last year. The company forecast first‑quarter adjusted earnings per share of 11 to 13 cents, slightly below analysts’ estimate of 14 cents.
Leadership change
In a separate announcement, Coty named former British American Tobacco finance chief Soraya Benchikh as its new chief financial officer, succeeding Laurent Mercier.
Peers such as Estée Lauder and e.l.f. Beauty have recently projected stronger years ahead, citing steady demand for beauty products. Coty’s latest results suggest the company remains competitive in a market where consumer spending is increasingly cautious amid geopolitical and economic uncertainty.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
