Coty returns to sales growth as Coty.Curated strategy moves into execution

Coty reported 1% year-on-year sales growth in Q4 FY2026, ahead of expectations, as the beauty group begins implementing its Coty.Curated strategic framework. Q4 like-for-like sales declined 1%, but this was a sequential improvement despite a 1% sales headwind from the Middle East conflict. For FY2026, operating cash flow increased to US$538 million and free cash flow reached US$348 million, despite lower profit margins. Under the Coty.Curated strategy, the company is streamlining commercial operations, Consumer Beauty Research & Development, and global brand marketing. This involves reducing the number of SKUs and focusing on fewer, high-impact product launches and hero items. Coty is also simplifying its portfolio, following the monetization of its remaining Well’s stake (US$750 million) and the US$400 million agreement to return the Gucci Beauty license to Kering. Coty is positioning FY2027 as a transition year, aiming to restore competitiveness and simplify operations as sell-out performance lags market benchmarks. Proceeds from portfolio disposals will be used for debt reduction and investment in core prestige fragrance and beauty brands. The company is also preparing for the Gucci Beauty exit in FY2028 and a strategic review of Consumer Beauty by the end of 2026.