Coty (COTY) Q4 2026 Prepared Remarks earnings summary

Executive summary

• Q4 FY26 like-for-like sales declined 1%, outperforming guidance, with sequential improvement despite a 1% headwind from Middle East conflict.

• Prestige division maintained strong margins, while Consumer Beauty faced ongoing pressure but showed sequential improvement.

• Free cash flow reached $348M, up $70M year-over-year, driven by working capital management and cost controls.

• Strategic actions included monetizing the Wella stake for $750M and selling the Gucci Beauty license to Kering for $400M plus inventory proceeds.

• The Coty.Curated framework is in execution, focusing on core brands, cost control, and portfolio simplification.

Financial highlights

• Q4 net revenues: $1,269.2M, up 1% reported, down 1% LFL; FY26 net revenues: $5,806.6M, down 2% reported, down 5% LFL.

• Q4 adjusted EBITDA: $93.6M (down 26% YoY); FY26 adjusted EBITDA: $846.9M (down 22% YoY); adjusted EBITDA margin: 14.6%.

• Q4 adjusted net loss: $13.4M; FY26 adjusted net income: $185.1M; adjusted EPS for FY26: $0.34, down 32% YoY.

• Q4 free cash flow: $72.6M (up from $34.9M YoY); FY26 free cash flow: $348.2M (up from $277.6M YoY).

• Net debt at year-end was ~$2.9B, reduced by $839M year-over-year; leverage at 3.4x.

Outlook and guidance

• Q1 FY27 like-for-like revenue expected to decline low to mid-single digits; adjusted gross margin to decline 50–100 bps YoY.

• Q1 FY27 adjusted EBITDA expected to decline by low teens percentage; adjusted EPS forecasted at $0.11–$0.13.

• Free cash flow for H1 FY27 expected to exceed $300M.

• No full-year FY27 guidance issued due to ongoing strategic review and portfolio changes; broader outlook to be provided after review completion by end of CY26.

• FY27 will focus on cost reduction, innovation, and preparing for the Gucci exit by FY28.