Coty reported fourth-quarter fiscal 2026 revenue of $1.27 billion, exceeding Wall Street's expectations. The beauty company's revenue beat estimates by $80 million, driven by stronger U.S. orders in prestige fragrances and mass cosmetics. However, adjusted loss per share was $0.02, compared to a forecast loss of $0.01, and shares fell 4.62% after hours to $2.89.
The company's like-for-like sales declined 1% in Q4, better than the expected mid-single-digit decline. Adjusted gross margin fell to 60.9% in Q4, reflecting lower volumes, excess inventory costs, and tariffs. Free cash flow reached $348 million in fiscal 2026, up about $70 million from a year earlier.
Fiscal 2027 Outlook
Coty expects fiscal 2027 to be a transition year as it simplifies the business and prepares for the Gucci license exit. For the first quarter of fiscal 2027, the company expects like-for-like revenue to decline by a low to mid-single-digit percentage. Adjusted gross margin is expected to fall by about 50 to 100 basis points year over year.
The company's executive chairman and interim chief executive, Markus Strobel, stated that the quarter was better than expected but stressed that the business still has work to do. 'Our fourth quarter results were ahead of expectations, an encouraging step as we improve execution consistency,' he said. 'At the same time, we are not where we want the business to be.
