Coty Posts Q4 Beat; Gucci License Exit Looms

Coty reported Q4 FY26 revenue up 1% year over year, with like-for-like sales down 1% as tighter cost control and streamlined incentives supported margins and cash flow. The company monetized its Wella stake for about $750 million and agreed to sell the Gucci Beauty license back to Kering for $400 million plus inventory, redeploying proceeds to debt reduction and core brand investment. Management signaled that Gucci’s exit will pressure FY28 sales and profit, but is being offset by accelerating core-brand growth and cost-cutting as part of the Coty.Curated strategy, with a transition year planned for FY27 to position the business for renewed growth in 2029. Coty also outlined portfolio simplification, including a review that could lead to divestitures of brands such as CoverGirl and Rimmel, alongside ongoing rightsizing of commercial, R&D, and marketing teams. The leadership shift included appointing Soraya Benchikh as CFO, part of organizational changes under Coty.Curated, and the company reiterated expectations that FY27 will be a transitional year with continued cost discipline. Market reactions varied, with postmarket trading reacting to mixed quarterly performance, including a Q2 CY2026 update showing revenue of $1.27 billion and a small non-GAAP loss, underscoring near-term headwinds despite resilient demand for beauty products.