Coty Faces Declining Sales Amid Strategic Reorganization
By Editor • August 20, 2026 • 1 min read
Coty's revenues took a slight dip in the fourth quarter of fiscal 2026, with like-for-like sales down 1% to $1.3 billion. For the full year, revenues fell 5% to $5.8 billion, prompting a 7% drop in shares during after-hours trading as the company refrained from issuing guidance for 2027.
Markus Strobel, interim CEO, expressed optimism about the company's closing performance, highlighting increased sales and profits compared to targets, as well as improved free cash flow. However, he acknowledged dissatisfaction with sell-out performance, particularly in the prestige and consumer beauty sectors, which are below market expectations.
In the latest quarter, prestige beauty revenues decreased by 0.5% to $771.8 million, while consumer beauty saw a 3% decline to $497.4 million. Noteworthy product launches, including new fragrances and makeup lines, showed promise with solid performances in online sales.
Regionally, the Americas reported a 6% revenue increase, though EMEA faced a significant 10% downturn. Looking forward, Coty anticipates 2027 to be a transitional year, with expected revenue declines in the first quarter.
To navigate these challenges, Coty has appointed Soraya Benchikh as CFO, aiming to enhance growth through initiatives that include optimizing core brands and reducing costs.
Source: www.vogue.com
