Coty Returns to Sales Growth in Q4 as Fragrance, Cosmetics and Americas Lead; Names Soraya Benchikh CFO

Coty closed fiscal 2026 with a return to reported sales growth, as strength in fragrance and cosmetics, mass body and skin care, and the Americas helped offset weakness in skin care, color cosmetics and EMEA. The company also outlined a restructuring agenda for fiscal 2027 and appointed Soraya Benchikh as chief financial officer, effective September 1.

Fourth-quarter net revenue rose 1% to $1.27 billion, although like-for-like (LFL) sales declined 1%. Coty said the quarter represented a significant sequential improvement in LFL trends and noted that the business absorbed an estimated 1% sales headwind from the conflict in the Middle East. For the full year, however, revenue declined 2% on a reported basis and 5% LFL to $5.81 billion.

“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,” said Markus Strobel, executive chairman and interim CEO.

Prestige revenue increased 1% to $771.8 million in Q4, although LFL sales declined 0.5%. Growth was driven primarily by higher prestige cosmetics and fragrance sales, partially offset by lower skin care. Profitability remained under pressure, with adjusted operating income down 19% to $60.2 million, reflecting lower fragrance shipments, tariff-related gross-margin pressure and higher fixed costs.

Consumer Beauty revenue also increased 1%, reaching $497.4 million, with growth in mass body and skin care partially offset by lower mass color cosmetics sales. The segment's adjusted operating loss widened to $20.7 million from $7 million a year earlier, amid supply-chain under-absorption, higher excess and obsolescence and tariff-related costs.

Geographically, the Americas was the standout growth region, with Q4 revenue up 9% reported and 6% LFL, driven by the U.S., Brazil and regional travel retail. Asia Pacific revenue rose 11% reported and 7% LFL, supported by China, Southeast Asia, Australia and New Zealand, as well as travel retail. EMEA was the major drag, with revenue down 8% reported and 10% LFL, driven by declines in the Middle East, Germany and Central and Eastern Europe.

Despite the improved topline, profitability deteriorated. Q4 adjusted operating income fell 42% to $39.5 million, while adjusted EBITDA declined 26% to $93.6 million. Coty reported a $144.3 million net loss attributable to common shareholders, compared with a $69.3 million loss in the prior-year quarter.

Coty is positioning FY27 as a transition year under its Coty.Curated strategy. The company is rightsizing its commercial organization as well as Consumer Beauty R&D and global brand marketing, while incorporating market-share targets into its global incentive program. It plans to focus resources on fewer, higher-impact Consumer Beauty color launches and proven hero products, while increasing advocacy and consumer engagement around its identified “big bets.” Coty also plans to optimize the visibility and recommendation of its brands across AI platforms.

The company expects the early return of its Gucci Beauty license to Kering to create a sales and profit step-down in FY28, but said it is developing measures to moderate the impact. These include accelerating core brands, expanding newer portfolio additions such as Marc Jacobs Beauty makeup and fragrances from Swarovski, Etro and Marni, and implementing a significant fixed-cost reduction program. Coty said the actions are intended to support growth across its core portfolio and profit expansion in FY29 and beyond.

Strobel noted, “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 (LFL) trends to down 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."

The executive continued, “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 organization.”

Coty also said it expects to finalize its strategic review of the Consumer Beauty business by the end of calendar 2026. The review encompasses its mass color cosmetics business and associated brands as well as its distinct Brazil business.

Meanwhile, Coty named Soraya Benchikh chief financial officer, effective September 1, succeeding Laurent Mercier. Benchikh brings more than two decades of international finance and general management experience, including senior roles at British American Tobacco and nearly four years at Diageo, where she most recently served as President, Europe. She will join Coty's executive committee and report to Strobel.

“Soraya is a seasoned global executive with a strong track record of financial and operational leadership, and she is the right leader for Coty’s next phase," said Strobel. "As we welcome her to Coty, I would like to sincerely thank Laurent for his leadership in strengthening Coty’s financial foundation over the past five years. He shaped a better finance organization, built greater financial discipline, and created a clear financial roadmap.”

Benchikh said, “Coty has one of the strongest portfolios in global beauty, and Laurent leaves the finance function in great shape. I’m joining at a pivotal moment in Coty’s transformation, with a clear strategy and a real opportunity to accelerate it alongside Markus and the team. My focus will be strengthening the balance sheet, sharpening capital allocation, and helping drive the next phase of sustained value creation.”