Coty Losses

Coty, a US cosmetics and fragrance group, has reported a net loss of USD 618 million for the fiscal year ended in late June. This loss is compared to a USD 381 million loss a year earlier, according to a statement released by the company.

Financial Performance

The group's full-year sales fell 5% to USD 5.8 billion. However, performance stabilized in the fourth quarter, with sales returning to growth and rising 1% in the three months ended in late June. Interim CEO Markus Strobel said the Q4 results provide early signs of stabilization, although the recovery will not be linear.

Restructuring and Transition

Coty is undergoing a restructuring and forecasts a transition year in fiscal 2027. The company plans to strengthen its core business and continue shaping a simpler, more focused Coty, factoring in both the Gucci exit by fiscal year 28 and final portfolio decisions related to its strategic review of Consumer Beauty by the end of civil year 26.

Gucci Beauty License

In July, Coty announced it would transfer the Gucci beauty license back to Kering, the French luxury group that owns the Gucci brand, for approximately USD 400 million. Coty will continue to operate Gucci Beauty until June 30, 2027. Under the terms of the agreement, L’Oréal will subsequently hold the exclusive license for the Gucci Beauty brand for 50 years. According to the source, Premium Beauty News, Coty plans to use the proceeds from the transaction to reduce debt, invest in its core portfolio of prestige fragrances and beauty products, and streamline its organization.

Future Plans

Coty also plans to continue significantly reducing the number of product launches and cutting marketing production costs, partly through the use of artificial intelligence, while increasing investment in consumer engagement. The company has announced the appointment of Soraya Benchikh as its incoming Chief Financial Officer (CFO), effective September 1, 2026. She will succeed Laurent Mercier. The appointment follows the new operating structure introduced by Coty, which includes a new commercial decision-making model and the consolidation of research and development and supply chain into a single function. Coty's plans are reportedly aimed at refocusing on fragrances and streamlining its organization. The company's strategy is linked with its efforts to reduce debt and invest in its core portfolio. As reported by Premium Beauty News, Coty's future plans are focused on strengthening its core business and shaping a simpler, more focused company.