Coty Inc. reported fourth-quarter fiscal 2026 revenue of $1.27 billion, exceeding the $1.19 billion consensus estimate by $80 million, or 6.7%. The company, however, posted an adjusted loss per share of $0.02, missing the expected loss of $0.01 by $0.01. Shares declined 17.49% in premarket trading to $2.50, down from the prior close of $3.03.
The earnings call, held on August 20, 2026, outlined Coty’s fiscal 2027 targets, including EBITDA above $50 million and free cash flow close to fiscal 2026 levels. The company also noted sensitivity to oil prices, with $20 million to $30 million in costs tied to assumptions between $90 and $100 per barrel, alongside a potential $30 million tariff refund pending resolution.
Executives highlighted ongoing strategic adjustments, including a shift from sell-in to sell-out metrics for fiscal 2027. Markus Strobel, Executive Chairman and Interim CEO, emphasized a focus on market share and sell-out growth, stating, “Our objective is to drive sell-out and to drive market share. This is new thinking for the organization.” The company also detailed regional performance, with CoverGirl and Sally Hansen improving in the U.S., while Europe’s “Color the Future” program progresses. Brazil returned to growth, though the Middle East remains challenged by oil-price sensitivity.
Coty is executing a 20% SKU reduction to streamline shelf space and prioritize fast-turning products. Laurent Mercier, CFO, noted stable shelf space expectations through fall resets, despite competitive pricing pressures in the prestige beauty segment during the holiday season. Strobel added that Coty maintains strong brand foundations, stating, “We have strong brands, leading positions in attractive categories, and a clear framework to strengthen execution.”
