Coty Q4 2026 sales impacted by weaker Consumer Beauty demand

By Lollie Hancock | Published: 20-Aug-2026

The Kylie Cosmetics and Rimmel London owner reported a weak performance across Consumer Beauty, as the planned exit for Gucci also weighed on the French beauty giant’s outlook

Coty has reported a mixed final quarter of trading in 2026, with revenue gains offset by pressure on underlying Consumer Beauty sales growth, resulting in a deterioration in profitability for FY2026.

Fourth quarter revenue rose a reported 1% to US$1.269b, helped by a favourable foreign exchange impact, while net revenue fell 1% on a like-for-like basis.

However, revenue for the full year declined by 2% to $5.86bn, while like-for-like revenue decreased by 5%.

A stronger performance from Prestige brands helped to offset weakness within Consumer Beauty, which faced pressure in Q4 from lower volumes, supply chain cost under-absorption, excess and outdated inventory and tariffs.

The French multinational, which owns brands including Kylie Cosmetics, Marc Jacobs Beauty and Rimmel London, has been reshaping its portfolio over the past year.

Portfolio changes have been central to the business’ strategy, with Coty completing the monetisation of its remaining stake in hair brand Wella for $750m, and agreeing to sell its Gucci Beauty license back to Kering for $400m.

“We were pleased to return to reported sales growth, with Q4 sales up 1% year-over-year and a significant sequential improvement in our like-for-like trends to down 1%, despite incurring an estimated 1% headwind to sales from the Middle East conflict,” said Interim CEO and Executive Chairman Markus Strobel.

“It is encouraging to see closer alignment between our sell-in and sell-out.

“However, we are not content with our sell-out performance, which remains below market levels in both divisions, and steadily closing that gap remains a clear priority across the organisation.”

A wider look at Coty’s performance in Q4 and FY 2026

Profitability was among the challenges for the year, with adjusted EBITDA falling 22% during the year to $846.9m

Coty attributes pressure to lower volumes and cost absorption, higher tariffs and excess inventory amongst other factors.

“In Consumer Beauty colour cosmetics, we are simplifying the innovation calendar and sku base, and shifting resources toward fewer, higher-impact launches and proven hero products,” said Strobel.

“We will execute these actions with discipline to minimise the impact on sales.”

Meanwhile, Prestige, which accounts for around two-thirds of the company’s revenue, proved more stable in 2026, despite full year like-for-like sales declining 4%.

Strobel added: “These favourable outcomes are fully consistent with our objectives, as we deploy the proceeds toward debt reduction, reinvestment in Coty's core prestige fragrance and beauty brands, and optimisation of our organisational structure.

"While the Gucci Beauty license exit will result in a step-down in sales and profit in FY28, we are developing plans to help moderate the impact.

“These plans include accelerating our core brands; maximising the contribution from new portfolio additions, including make-up under Marc Jacobs Beauty and fragrances under Swarovski, Etro, and Marni; and lowering our cost structure through a significant fixed cost reduction program.

“These actions are designed to mitigate the FY28 impact and position Coty to accelerate growth across our core portfolio and drive profit expansion in FY29 and beyond.”

Coty expects its Q1 fiscal 2027 to see a decline in like-for-like revenue and adjusted EBITDA, with management framing 2027 as a transitional year rather than an immediate return to growth.

“We have important strengths to build on, including leading brands, strong category positions, solid cash generation, and a differentiated end-to-end global platform,” said Strobel.

“We are confident that our focused Coty.Curated framework will unlock Coty's significant potential and steadily translate into shareholder value in the years ahead."