Coty Beats Revenue Estimates and Names New CFO Amid Gucci License Exit

Despite preparing for the eventual loss of its Gucci Beauty license, Coty Inc. ended its fiscal year on a positive top-line note, topping Wall Street revenue estimates for the fourth quarter.

Net revenue for the three months ended June 30 rose 1% to $1.26 billion, outperforming analyst expectations of $1.19 billion. Growth was consistent across both operating divisions: prestige net revenue rose 1% to $771.8 million—accounting for 61% of group sales—while consumer beauty net revenue increased 1% to $497.4 million. The performance arrived as global cosmetics groups reported mixed results across regional markets, echoing trends highlighted in recent key takeaways from global beauty’s first-half earnings reports.

Despite beating revenue targets, bottom-line results remained under pressure. Coty reported a quarterly net loss of $144.3 million, widening from a net loss of $72.1 million in the prior-year period. Adjusted loss per share narrowed to 2 cents, missing Wall Street expectations for a 1-cent loss.

Markus Strobel, executive chairman and interim chief executive officer, pointed to sequential operational improvements while acknowledging ongoing challenges in consumer sell-out trends. "We were pleased to return to reported sales growth, with Q4 sales up 1 percent year-over-year and a significant sequential improvement in our like-for-like trends to down 1 percent, despite incurring an estimated 1 percent headwind to sales from the Middle East conflict," Strobel said. "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 organization."

Looking ahead, Coty is formulating strategy for a portfolio without Gucci. In July, L’Oréal revealed an exclusive 50-year beauty license with Gucci starting a year early, cutting short Coty’s contract, which was originally scheduled to run through June 30, 2028.

"While the Gucci Beauty license exit will result in a step-down in sales and profit in FY28, we are developing plans to help moderate the impact," Strobel said. He outlined a strategy focused on accelerating core owned brands, expanding license partnerships—including color cosmetics under Marc Jacobs Beauty and fragrances for Swarovski, Etro, and Marni—and implementing a major fixed-cost reduction program. Strobel noted that these initiatives aim to offset the fiscal 2028 impact and position Coty to accelerate growth and margin expansion starting in fiscal 2029.

Alongside the earnings report, Coty announced that Soraya Benchikh will take over as chief financial officer on Sept. 1, succeeding longtime CFO Laurent Mercier. The transition reflects broader C-suite shifts across the beauty industry, such as recent top executive appointments at Ulta Beauty, Estée Lauder, and Kosas.

Benchikh brings extensive corporate financial experience, having most recently served as CFO of British American Tobacco following nearly four years at Diageo. Her executive appointment follows an operational restructuring implemented on July 2 that decentralized commercial decision-making to local markets while merging research and development with supply chain management under a single leadership structure.

"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," Strobel said, thanking Mercier for strengthening Coty's financial organization over the past five years. Benchikh stated that her immediate focus will center on balance sheet strength, capital allocation discipline, and supporting long-term value creation as Coty navigates its strategic transition.