Coty appoints new CFO as sales beat forecasts but losses double
Coty reported fourth-quarter revenue of $1.27 billion, ahead of market expectations, but its net loss more than doubled as lower volumes, tariffs and excess inventory weighed on profitability.
The results come as the company appoints former British American Tobacco and Diageo executive Soraya Benchikh as Chief Financial Officer from 1 September. Her arrival follows wider changes to Coty’s senior team and operating structure under its Coty.Curated strategy.
Markus Strobel, Executive Chairman and Interim Chief Executive Officer, said: “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.”
Benchikh replaces Laurent Mercier, who has held the role since February 2021, having previously served as Deputy CFO and CFO of Coty Luxury.
Coty sales beat forecasts but loss doubles
Net revenue increased 1% in the three months to 30 June 2026, beating analysts’ estimate of $1.19 billion. Foreign exchange provided a 3% benefit, while like-for-like revenue declined 1%, including an estimated 1% impact from the conflict in the Middle East.
Prestige revenue rose 1% on a reported basis to $771.8 million, representing 61% of quarterly sales. Consumer Beauty revenue also increased 1% to $497.4 million, although like-for-like sales fell 3%.
Coty’s reported net loss widened to $144.3 million from $72.1 million a year earlier. Its operating result moved from income of $15.5 million to a loss of $42.7 million, while adjusted EBITDA fell 26% to $93.6 million.
The company said the gap between shipments to retailers and consumer sell-out narrowed during the quarter, but underlying demand for its brands continued to trail the wider market in both divisions.
Strobel said in the results announcement: “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.”
For the full year, revenue declined 2% to $5.81 billion, while adjusted EBITDA fell 22% to $846.9 million.
Gucci Beauty transfer creates FY28 pressure
Coty will continue operating Gucci Beauty until at least 30 June 2027 under its $400 million early-transition agreement with Kering. L’Oréal is then expected to take control of the licence around a year earlier than originally planned.
The company expects Gucci Beauty’s departure to reduce revenue and profit sharply in FY28. Its response will include fixed-cost reductions and greater investment behind core brands and newer portfolio additions such as Marc Jacobs Beauty, Swarovski, Etro and Marni.
Coty said the relaunch of Marc Jacobs Beauty was achieving online sell-out at Sephora ahead of targets. Distribution is due to expand into hundreds of Sephora stores in the US and travel retail from September.
For the first quarter of FY27, the group forecasts a low- to mid-single-digit percentage drop in like-for-like revenue, with adjusted EBITDA down by a low-teens percentage.
